A look at last week’s trading strategies employed by the Tradier investing community. Commentary by Todd Horowitz.
The start of the second quarter saw markets selloff from resistance to support. None of this is a surprise, in fact it was somewhat predictable. There was no technical damage done, the trend remains higher.
On Friday we had the jobs report, it was disappointing. Markets attempted to rally before selling off. However, market volume remained low, and markets lacked any real conviction.
Economic data is terrible, the FED is going to continue to hike rates. We are in a recession although nobody wants to call it. The future looks bleak, the rally looks to be driven by retail trade. It appears the big money is waiting to pounce and sell.
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 VIX continues to fall confirming complacency and greed.
The bulls were buying AAPL, NVDA, SPY, IWM, and QQQ, while the bears were selling ATVI, GOOGL, MVIS, UVXY, and TNA. The Nasdaq was the weakest last week, but expect a rally from support.
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 Horowitz, Chief Strategist, Bubba Trading