Market Report The FED, Inflation, and the Rally

Market Report The FED, Inflation, and the Rally

By

Todd Horwitz Chief Strategist BubbaTrading.com

Be Prepared not Surprised.

In unprecedented fashion the markets continue to rally. Higher rates have not slowed the rally. It appears that the buyers continue to flow without regard to the economy.

Corporate profits appear to be solid, last week GOOGL, MSFT, and META all beat handily. Whether you are a believer in this market or not the tape is. There is no reason to try and short this market today, in the future there may be but for now, up they go.

This week earnings season continues with AAPL, AMZN, and others. The rally should continue despite what you may hear or read. There are too many bears trying to fight the move rather than participate. That is always a sign that there is more room to run.

Like last week, Put Spread sellers led the way followed by Call Buyers. Iron Condors, Bear Puts, and Bear Call Spreads round out the top five. The VIX continues to fall confirming complacency and greed. Investors are passing up CD’s paying 5% to stay in equities.

The bulls were buying QQQ, AAPL, F, MSFT, and XLE, while the bears were selling BUD, BMY, OMC, UPST, and CVNA. The markets are acting as expected.

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