Market’s down for the eight count, is this the knockout?
Market’s down for the eight count, is this the knockout
Market’s down for the eight count, is this the knockout?
By
Todd Horwitz Chief Strategist BubbaTrading.com
Be Prepared not Surprised.
Markets appear to be taking an eight count in front of a possible knockout. Markets suffered a major beat down on Friday after Chair Powell suggested pain was coming. It appears the FED could be hiking as much as a full point at the next meeting.
On Friday the Dow fell over 1000, Nasdaq over 500, S+P 140, and Russell 66. It was your basic sell first ask questions later. Panic was on the display with the VIX jumping almost 20%. Which brings the question, is the rally over?
The trend has certainly turned lower however there are never any guarantees what will happen next. A big selloff makes sense based on the economy, the FED and other things. For months we have watched the economy and markets go in opposite directions.
Option strategies were very mixed for the week basically flat coming into Friday. Iron Condors, Bull and Bear puts, Bear and Bear call spreads were on the top. In other words, markets although lower are still noncommittal. This is a holiday week; we may not get the answers this week.
The bulls were buying AMD, UAL, M, SOFI, and TSLA (no doubt playing the split). The bears were selling, SPY, IWM, DIA, GLD, and TNA. Basically, selling the mass markets while stock picking.
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
Bubba Trading is proud to announce that Tradier is sponsoring the live stream of our Las Vegas event December 6th – 8th. This event is always a tremendous success where we train on all facets of trading and investing.