Thursday, March 31, 2016

End of Day Post

The markets closed slightly lower today, but still remained above resistance levels. We could see some consolidation, or even a small correction, over the next few sessions since the markets look to be a little over-extended.

Depending on how the next market pattern develops, whether a consolidation or correction, could give us insight into the next bullish move (if indeed the bull trend continues). There is no shortage of setups in these markets, so take your time and choose the trade that best fits your current outlook and portfolio exposure.

Have a great night,

The Maverick Trading Team

Tuesday, March 29, 2016

End of Day Post

The markets pushed higher today after the Fed announced that it will take a slower approach in its interest rate policy. Fed Chair Janet Yellen made reference to current global developments, which could impact the economic growth of the U.S.

Although we don't know how long this outlook will last, the initial reaction of steady interest rates in the near future caused a decent surge in the markets. We should expect more upside in the near future; however, maybe not as aggressive as today's move.

Technically, we are now testing newer resistance levels that were set last week and we could see a slow bullish climb moving forward. Don't abandon the bear side completely; rather, continue to stay bullishly exposed for now.

Have a great night,

The Maverick Trading Team

Thursday, March 24, 2016

End of Day Post

The markets closed positive on the session, as both the S&P and INDU posted hammer candles. The markets look to be pulling back this week, after breaking out of resistance the previous week, but today's action supports the current bull move. This could end up being a short-term correction, but we won't know until next week. Tomorrow is a U.S. stock market holiday and we won't see any market action, so let's make a plan for what could happen next week.

Take the long weekend to break down your account exposure and detail out any possible trades. If you have a plan of attack, then it will take less time to implement trades and adjustments based on market action. We want to follow predetermined rules and not trade based on impulsive reactionary emotions.

This week's Trading Room will be prerecorded due to the market holiday. An email will be sent with the link once the recording is ready.

Have a great night,

The Maverick Trading Team

Tuesday, March 22, 2016

End Of Day Post

The markets started the week off strong, as all three majors gapped up Monday morning. Since then, we haven't seen much market direction and, with today's horrible attack on Brussels, we wouldn't expect too much market enthusiasm.

The markets are still a little overextended here. We should see some reaction to today's events over the next couple of days. This could move the markets in either direction, so we need to wait a day or so to see which way we go. The slow bullish grind is still in effect. However, probability wise, a pull back or consolidation should be coming.

Stick to your bullish positions if you have them. Adding more could prove difficult, so make sure and take advantage of the ones that you already have.

Have a great night,

The Maverick Trading Team

Thursday, March 17, 2016

End Of Day Post

The markets continued to move through resistance levels, pushing higher today on increased volume. Yesterday’s FOMC announcement indicated economic growth; however, it could be slower than previously anticipated. We didn’t see too big of a reaction to the announcement itself, but we have closed higher over the last two sessions.

We do have an expiration cycle for March tomorrow, so we could see some consolidation and/or a retracement of today's action. Either way, make sure to keep a close eye on any positions you have that will need to be closed or adjusted. Don't overthink any "one day move" in the markets; instead, continue to focus on the overall trend. Make your adjustments and closures as indicated in your Trading Plan before looking into adding more positions.

There will be opportunity next week to enter new trades, so take your time in making decisions between setups. These markets have been in a nice trend here, so let’s continue to take advantage of them when possible.

Have a great night,

The Maverick Trading Team

Tuesday, March 15, 2016

End Of Day Post

The markets hesitated at resistance again today, as this level is starting to prove its significance. Both INDU and the S&P are at their 200-day simple moving averages, which are also major resistance levels for both. The Nasdaq is the weakest of the three, which is surprising since tech is usually a leader in bullish moves.

Today's hesitation was a healthy one for the markets, especially for the bull move up to this point. With consolidation comes the increase to probability moving forward. If stocks are allowed to correct, then we will see better opportunity moving forward.

We only have a few days left in March's expiration. There might not be enough premium left to justify March combos here, so consider looking to later weeks or wider spreads into April.

Have a great night,

The Maverick Trading Team

Thursday, March 10, 2016

End Of Day Post

The markets tested resistance levels today, associated with some volatility. These current market levels are very significant...this was the same area the S&P broke down last year.

As discussed over the last couple weeks, this should be the biggest test to the current bull move. If the bulls retract from this point, then we could see some sideways to down over the next few days, creating some shorter-term bearish opportunity. Keep in mind that, even with a small correction, the overall sentiment is still to the upside.

Don't rush to add new bull trades here. March expiration is next week. With a pullback, we will see new opportunity for bull trades over the next few days.

Have a great night,

The Maverick Trading Team

Tuesday, March 8, 2016

End of Day Post

The markets moved lower after testing upper resistance levels. All three majors touched their upper resistance levels over the last couple of days. This is an ideal place for a bullish correction, if we indeed get one.

Earlier this year, we discussed the chance for bullish opportunity once the markets reached these levels. After a correction, this should be true. However, during the correction, we can take advantage of shorter-term bearish to sideways action.

Use the short time left in March’s expiration cycle to your advantage. With only 8 days left, we can take advantage of either direction long- and short-term.

Have a great night,

The Maverick Trading Team

Thursday, March 3, 2016

End of Day Post

The bullish surge continued, as all three major markets closed higher on today's session. It appears that Tuesday's move spilled into the last couple days, as we are now nearing new resistance levels. Look to new resistance levels at 17,000 in the INDU, and 2,000 on the S&P.

This surge did come from a breakout pattern and appears to still have some legs, but plan on sitting through a pullback in the near future. Straight call positions should be closely watched for approaching targets. With the markets looking a little extended here, look to combo trades moving forward.

A market extension like this can be compensated for by selecting the correct strategy, especially if you feel late to the game. Just follow your rules and use hedged combos.

Have a great night,

The Maverick Trading Team

Tuesday, March 1, 2016

End Of Day Post

This steady bullish move we have seen over the last couple weeks made a strong push today, as all three majors broke above resistance levels. Today’s move was also associated with an increase in volume, a good sign this move could sustain above these resistance levels.

Keep an eye out for the next resistance level if the markets continue higher. With a surge like this, we will expect to see a small retracement or correction at some point, maybe later this week. This can create more trading opportunities if the new support holds. So, if you don’t enter any bulls over the next day or two, we should see another opportunity on the retest.

Have a great night,

The Maverick Trading Team