Buy the Rumor, Sell the News

Buy the Rumor, Sell the News - Bubba Show
Todd "Bubba" Horwitz on Liberty Talk FM - Image Rotator Photo

BY: Todd Horwitz, Host & Senior Contributing Analyst
PUBLISHED: March 24, 2016

Big Market Move Brewing

With markets on edge, Bubba talks about the existing problems within and what could possibly happen going forward. The pundits continue to talk up the markets looking for the rally to continue, demonstrating they have no clue as to how markets work. They continue to explain to everyone that this time is different and that the markets can go up forever.

The media is focused on the pending health care revamp and tax cuts. Bubba explains that all the good news is already priced in to this market. Valuations are out of sight and will only get worse. Markets have rallied 250% since the bottom and 22% since the election, some investors may consider taking profits at some point.

Trading, investing and markets are about probability, though other factors play a roll, technical analysis with high probability trades make good investors. Bubba talks about his frustrations created by so-called experts when they babble on something of which they have no clue, while none of their own money is invested.

Bubba explains why there is a huge move brewing and it could go either way. Bubba believes it will be down, but indicates that either direction is possible and the move will be big. Markets are an interesting animal, they assume things months in advance, which is why we buy the rumor and sell the news.


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Todd Horwitz began his career in the financial industry as an option market maker at the Chicago Board of Options Exchange in 1982 and was one of the founding traders in the SPX pit. He is an active member of the am currently a member of the Chicago Board of Trade.