Market Report Short Squeeze rally should be sold
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.
Last week we saw a short squeeze rally also called a dead cat bounce. The timing of the rally was right on schedule with markets being oversold and the charts looking for some mean reversion.
You must remember, markets will always find a time for mean reversion after they extend in either direction too far. Learn and understanding the price action is important for long term success.
Trading is a game of probability very much like options. The idea is to find trades that give you the best chance to win. There is always risk on every trade, it’s our job to defend our portfolio and keep losses small.
Although the markets rallied last week the options maintained a bearish posture. The leaders were Bear Puts, Bear Calls, Iron Condors, and as usual call buying. The VIX held up well as well indicating there is option buyers in the market.
The Bulls were buying, NVDA, TNA, GOOGL, COUP, and AMZN. While the bears were selling SPY, SPX, GSAT, QQQ, and VERU. Very similar to last week with the indexes being sold.
As traders and investors, we have one thing to remember, follow the trend of the market. Be patient disciplined and leave your emotions out. The most important thing to remember is money management and self-control.
Todd “Bubba” Horwitz
BubbaTrading.com
*** A special note, Tradier is sponsoring our Las Vegas event which is at Circa starting on December 5th and ends December 8th. The event kicks off Monday night December 5th with a cocktail party, followed by class December 6th,7th, and 8th.