Todd Horwitz Commentry

Market Report What will stop this rally?

CPI, FED, Inflation

Market Report What will stop this rally?



Todd Horwitz Chief Strategist

Be Prepared not Surprised.


The improbable rally continues to get stronger. The bearish sentiment by many has led to the markets feeding on negativity. This is one of the reasons we warn about listening to or trading on the news. Our mantra is: trade the news, you lose.

The economic conditions continue to worsen, although the CPI number may have fallen, inflation has not. Unfortunately, the metrics used for calculating inflation do not apply to the average person.

Last week’s CPI number of 4% only counts for a tiny portion of food and energy. Since the average American spends more than that except for emergencies it’s a hard number to digest. Although the FED paused last week, rates are going higher.

The Option market was consistent with the market action with call buyers taking the top spot. Put buyers, Bull Put, and spread sellers, Call spread sellers. Volume has been light and lacks some liquidity. Watch the VIX which was higher during the big rally, a warning sign.

The bulls were buying NVDA, SPY, AAPL, TSLA, and QQQ. The bears were selling SPCE, VXX, RIDE, AI, and MANU. Markets lack volume and participation.

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

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