Market Report Stocks and Options turn Bullish
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
What might be considered a big surprise, the markets have turned bullish. At this point nothing seems to matter, high inflation, impending rate hike, broken supply chain and a food shortage has not slowed the markets. The trends have turned positive.
Technically markets are in a bear market or churning in and out of one. But for now, the trend is higher as are the option traders. It’s hard to believe with some of the worst economic data in history the markets could turn, they have.
This is the reason that trend following and not news watching are the keys to success. Price action is what dictates market movement, not opinions, economic data, or news. You must let the markets direct you in the direction they want to go.
Option strategies for the week were mixed. As usual call buying leads the way which we always remind you is not necessarily bullish. The rest of the top five were, bear puts, iron condors, bull and bull put spreads. The action in options is more bullish than bearish.
The bulls were buying AMD, BYND, NVDA, TNA, and AMZN. The bears were once again selling the indices, SPY, IWM, TLT, QQQ, and NFLX. Markets can go anywhere from here, lots of earnings this week.
Remember, we can’t predict what’s next, but the price action will give indications and guide us in the right direction. All signs are starting to point lower however flexibility is the key to trading successfully.
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