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Triple Witching Week

This could be the week that we see a move in markets, and all signs point to a break lower.
Weekly trading strategies

Weekly trading strategies, a roundup by Todd Horwitz, Chief Strategist,

Last week was another mixed bag as the markets continue to consolidate. This will eventually end, and the markets will break out one way or the other. The challenge and frustration should end, possibly this week.

This week brings triple witching expiration, and volume should increase. This could be the week that we see a move in markets, all signs point to a break lower. We will not predict but certainly lean that way.

Everything depends on the economic data, the new Covid variant and price action. Looking at the bigger picture it is hard to believe the markets have rallied this far, that’s why we don’t fight the tape.

The VIX continues to get clobbered indicating a spike and a down move is coming, there is too much complacency. Iron Condors led the way followed by Bull Put Spreads, Bear Puts, Bull Calls, Bear Call Spreads.

The bulls were buying SPY SPY , AMZN AMZN , TSLA TSLA , QQQ, and GLD GLD , while the bears were selling NVDA NVDA , TLT TLT , CHWY CHWY , SQ SQ , and NVAX NVAX . The markets are acting as expected.

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.

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