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Top 10 Trading Strategies (Week of 5/23/23), Plus ’The Rally Explodes’

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 15, 2023

Market Strategy

The Rally Explodes

Last week saw the rally continue with the markets exploding higher. The Nasdaq remains the leader with the A.I. going up exponentially. NVDA had earnings last week and rallied 30% helping the Nasdaq explode higher. The Nasdaq is now on 14-month highs.

The other indices remain in consolidation with a bias to the upside except for the Dow which is weak in comparison. Russell is also weak but holding. The big picture, a few stocks are driving the entire market.
Economic data is still weak but skewed to benefit those in power. Inflation is soaring despite the falling CPI. As we have written for the past couple of weeks, there appears to be a resolution on the debt ceiling. This is not good news for taxpayers.

The Option market kind of defied the trend with Put Buyers leading the way. Call Buyers were next in line followed by Iron Condor sellers, Bull and Bear Spread sellers. The VIX continues to fall while complacency rises.

The bulls were buying NVDA, AMZN, IWM, MSFT, and XRT. The bears were selling SPY, GLD, AI, KSS, and MRVL. 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

The saying that there is no such thing as a free lunch is very much true for Robinhood.