Market Report the Bulls are Back, why?
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Markets have an amazing mechanism and often don’t make sense. This is always the time that the uniformed get hurt playing in markets that have no reason to be going higher, but they are. The only selling of the week cam at the end but indices were marginally higher.
We must remember that price action is the key, not the news. Economic conditions do not have to come into play today, eventually they will. However, those who have been trying to short the markets find themselves in a state of misery. The short covering came fast and furious sending the bears away.
There is no doubt that eventually the markets will have a big haircut, but who has the capital to hold and wait? Volume has been light, and volatility has been falling. Complacency reigns in these markets which is always a concern.
The first quarter has ended and March left with a whimper. Exploding inflation, the Russia/Ukraine conflict, a possible food shortage and here the markets are near their recent highs. Markets are always interesting and following the footprints is always the best way to trade.
The top 5 option strategies last week were bullish. Call buying, Put and Put spread selling add in call spread buying. The bulls were led by AAPL, AMD, QQQ, IWM, and M. The bears saw action in SPY, GLD, SPXW, FXI, and MVIS.
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