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Top 10 Trading Strategies (Week of 5/30/23), Plus ’What Can Stop the Rally?’

Here are the weekly trading strategies employed by the Tradier investing community, with commentary by Todd Horowitz.
Weekly trading strategies

The table below shows the strategies most frequently applied by traders in Tradier’s investor community last week. To find out how Tradier’s bulls traded, go here. To find out how Tradier’s bears traded, go here. Commentary and analysis by Todd Horowitz, Chief Strategist, follows after the table.

Top 10 Trading Strategies for the Week of May 30, 2023

Market Strategy

What Can Stop the Rally?

Markets exploded last week, buoyed by economic data, earnings, and the jobs report. Add this negative sentiment from traders and you have a huge rally. This week will go a long way to determining how high they can go.

We know that markets can go further than we think. As long as traders continue to fight the trend the higher, they can go. Low volume has also been part of the fuel pushing markets higher.

Here is a look at possible headwinds that can derail the rally. The Fed is expected to pause in June but start to hike again in July. With Friday’s artificial jobs number, the Fed may have to reconsider.

Complacency is probably the biggest fear as the VIX continues to fall, making a 14-month low.

The Option market returned to somewhat normal 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.

The bulls were buying NVDA, AMZN, AAPL, MSFT, and SQ. The bears were selling BX, GLD, TTD, MDB, and XLE. 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 Horowitz

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