Thursday, February 16, 2017

End of Day Post

The markets showed the first sign of slowing after six (6) consecutive sessions higher. Volatility remained on all-time lows, although we did see an intra-day spike up to 12.86 on the VIX. The markets appeared to react to some uncertainty in new tax laws, along with changes to healthcare, coming in the near future. This could hinder further movement in the markets in the short term or even create some corrective action.

Whenever price action surges, in either direction, it will eventually need to correct. The trick is in identifying when the correction will take place. The first sign is hesitation (e.g., a reversal candle, etc.). We will then need to see a move lower, confirming the reversal signal. This can get tricky unless it is tied to a catalyst of some sort. Keep an eye out for possible news catalysts as we head into the long holiday weekend.

Remember, February options expire tomorrow and the U.S. markets are closed on Monday. Make sure that you are prepared and make the necessary adjustments to your portfolio.

See you on this week's live Trading Room class (moved to Monday night due to holiday)!

Have a great night,

Your Maverick Trading Team

Tuesday, February 14, 2017

End of Day Post

The markets experienced another move higher today, making it four trading days in a row since breaking above resistance.

Today, Fed Chair Janet Yellen made a comment on the continued growth of the economy (specifically, employment and inflation). The Fed will continue to monitor the growth to see if it can stay within their 2% target. This will be one of the main factors in making a rate adjustment in the future. So, the bullish sentiment remains in control, even at these extended levels.

Technically, it can be hard to enter bullish positions when the market is over-extended. There are some bullish trades out there, but no need to force anything too aggressive. We will get a base or a pullback at some point. Be aware of your time frame when entering new trades. The longer out you go, the more you need to anticipate corrective action in your position.

See you on Wednesday's Mid-Week Trading Room Update class!

Have a great night,

Your Maverick Trading Team

Thursday, February 9, 2017

End of Day Post

All three majors pushed through resistance today, closing above previous highs. Today's move was the one that we had been anticipating as we have been watching these markets high base for a few weeks. This is a bullish sign and confirms market sentiment higher. Don't expect the markets to race straight up from here, but don't be afraid to increase a little more bullish exposure either.

Technically, we confirmed a breakout pattern in the majors. It would be nice to see some strong follow-through tomorrow. Keep to the current outlook and, as you see below, it is right in line with these markets.

See you on this Sunday's live Trading Room class!

Have a great night,

Your Maverick Trading Team

Tuesday, February 7, 2017

End of Day Post

The markets continued to stay in a high range, but aren't showing much conviction to do more. Earnings results are still coming out, some good and some bad, but still not enough to get the markets moving. Volatility remains low, so keeping a Maverick Outlook of +1 continues to make sense here.

Technically, the markets are in high basing/ascending triangle patterns. These patterns do take time to build energy before they break out. If we continue to see this type of market action, then we could see a push above resistance later this week. This move can come intra-day as well, but it must close above resistance levels to confirm.

See you on Wednesday's Mid-Week Trading Room Update class!

Have a great night,

Your Maverick Trading Team

Thursday, February 2, 2017

End of Day Post

There was little to no reaction in the markets today, following an uneventful FOMC statement. The Fed made no changes to interest rates yesterday. Even with increasing confidence numbers, the Fed continues to see moderate economic growth. Sentiment remains to the bullish side, as we look to close out the first week of February.

All three majors look to be in consolidation mode here. We have yet to find a catalyst to move the markets one way or the other. Earnings results are creating some volatility in individual stocks, but we are still waiting to see the overall impact on the markets.

See you on this Sunday's live Trading Room class!

Have a great night,

Your Maverick Trading Team

Tuesday, January 31, 2017

End of Day Post

The S&P recovered the majority of its losses and the Nasdaq edged out a small gain. The INDU closed down over 0.5%, but it also managed to recover most of its losses. We have seen some corrective action over the last few sessions, as all three majors have moved back into their respective ranges.

With a high base breakout comes a retest of previous resistance. This has been the case for the markets this week. Over the last two days, we have seen the markets move lower. However, both days closed well off the lows of the session. This leaves us with hammer candles, showing signs of reluctance in bearish conviction.

We are still in a bullish trend here. The last few days should not be seen as anything more than a retest of support (so far). We will have an FOMC announcement tomorrow midday, which can always have an impact on sentiment. Keep to your current outlook until the markets tell us otherwise.

See you on Wednesday's Mid-Week Trading Room Update class!

Have a great night,

Your Maverick Trading Team

Thursday, January 26, 2017

End of Day Post

The markets paused today after making a strong push through resistance yesterday. It takes a lot of energy for the markets to gap higher, so seeing some hesitation over the next day or two is to be expected. Yesterday's surge didn't have a catalyst attached to it, which leads us to believe it was just a bullish surge that the bears didn't want to sell.

We could be seeing the start of a bullish move here with a gap above a stubborn resistance level that the markets have been struggling with over the last two months. However, it could also be a "blow off top," which could create profit taking and, in turn, start some corrective action. Either way, we don't have enough data to go on just yet. Let's see if tomorrow gives us more to move on.

See you on this Sunday's live Trading Room class!

Have a great night,

Your Maverick Trading Team