Market price action suggests that the change in direction has begun.
Market Report: The Bulls are Back in Town
The bulls are back pushing markets higher.
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Although the last day of the year was lower, the bulls are back pushing markets higher. Only the Russell continues to lag the rest of the indices. The S+P and Nasdaq made all time highs during the week while the Nasdaq was close.
Nothing seems to bother this market, skyrocketing inflation, interest rate hikes, Covid nothing matters they just go higher. We all know that there will be a correction, but they can’t be timed. The trend is higher it’s that simple, fighting the trend is like donating money.
The VIX continues to falter which tells us there are more option sellers than buyers. Like every other week, Call buyers lead the way, followed by Put and Put spread sellers, Put buyers and Bull Call spreads. The key to watch here is the VIX.
Tech is starting to take control once again with AAPL leading the way followed by TSLA, AMD, MSFT, and DIS. Other than the SPY the rest of the top 10 are tech. Casino and gambling stocks are getting hammered as they lead the bears, DKNG, IWM, SPCE, AMZN and PENN lead the bears.
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