A look at last week’s trading strategies employed by the Tradier investing community. Commentary by Todd Horowitz.
Markets took a small break last week however the drivers are greed and complacency. A small sell-off was expected but the long-term uptrend continues. You must remember that markets are driven by fear and greed.
The economic data is lousy, volume is down and the VIX continues to make new lows. These are all signs of a market making a top. There is no time frame on how long it will take to top out, but we can say with confidence the probability of a break rises every day.
Moving into the dog days of summer, expect slow trading which will probably be a form of consolidation. Except for a fundamental news bomb look for steady action for now.
The bullish condition was confirmed by the option markets with a falling VIX. Call buyers led the way followed by Put and Put Spread sellers. There were some put buyers and Iron Condor sellers. The overall option world is leaning bullish.
The bulls were buying AAPL, IWM, SPY, MSFT, and AMZN while the bears were selling GLD, SPCE, XSP, SMH, and DISH. The Nasdaq exploded higher with tech earnings knocking the cover off the ball.
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
