Market Report Who will take control, bulls, or bears
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
It’s a New Year and the markets are still dealing with a lot of indecision. During the holiday shortened week the bulls kept buying only to get slapped down by the bears.
That all changed after Friday’s Job Report with the bulls taking full charge when they realized that although the number was a beat, it was far less than expected.
Their reasoning is not good for the economy, they are betting that the FED will stop hiking rates and possibly cut. That will be a tough case to make with inflation charging ahead.
The Options market was also confused with the bull/bear scenario playing out. Call buyers led the way with Bear Puts, Bull Puts, Spread Selling, and Iron Condos. The VIX lost about 5% for the week which gives no real clues.
The bulls were buying SI, IWM, AMC, UNG, and AAPL. The bears were selling, SPY, FXI, MSFT, SPXW, and PYPL. Like last week, a mixed bag with little direction.
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