Thursday, April 28, 2016

End Of Day Post

The markets moved lower today after the FOMC announced that it will keep rates unchanged. All three majors showed more volatility today than we have seen in a while, as this Fed meeting appears to have carried some impact.

We are now quickly approaching support levels. Regardless of direction, we should expect volatility to continue over the next few days. Tomorrow's action will determine if we hold support or continue lower. Two days doesn't make a trend, but with increased volatility to the downside, we could be in for a small market correction.

Keep an eye on tomorrow's close and volatility levels. This could give us some insight on any changes to sentiment. We are still in earnings season, so continue to check earnings dates.

Have a great night,

Your Maverick Trading Team

Tuesday, April 26, 2016

End Of Day Post

The markets look to be hesitating here after a pullback late last week. This pullback started after a nice breakout on the INDU and S&P, which was also from some key resistance levels. We can't read too much into this current indecision, though, since we are in earnings season and individual results can waiver the overall market sentiment.

Pay attention to tomorrow's FOMC statement since it could cause market volatility. Continue to keep an eye on the 2100 level of the S&P. We are not saying that we are moving higher from here, but it is the next major level.

Have a great night,

Your Maverick Trading Team

Thursday, April 21, 2016

End Of Day Post

The markets hesitated at resistance today. Both the S&P and INDU closed lower on the session, each down over -0.5% today. We expected a pullback at these levels, especially after a nice base breakout. This is not to say we should be bearish; rather, take some time in entering anything aggressively bullish here.

Earning season will continue to impact these markets and overall results should start to impact specific sectors over the next week or so. Be mindful of the total risk/reward of holding a position through earnings. If you didn't plan for holding through an earnings announcement, then you might consider taking action beforehand.

This has been a very direct and strong bullish move to this point. Today is the first day of what could be a bull pullback. Keep in mind the overall trend and support levels once they are touched.

Have a great night,

Maverick Trading

Tuesday, April 19, 2016

End of Day Post

The S&P and INDU closed above major resistance levels today, although only slightly. This was a pretty significant achievement for the bulls; however, at 2,100 on the S&P and 18,053 on the INDU, the achievement was not a very convincing one.

We are in earnings season and are already seeing some results, along with market reaction to them. Keep this in mind when researching new trades and trade setups.

Earnings season can make normal trading difficult. Take advantage of earnings-specific strategies, but don't get carried away and do too many. There can be opportunity to trade after results – allow a few days for a tradeable pattern to develop or a corrective action to take place.

Have a great night,

Maverick Trading

Thursday, April 14, 2016

End of Day Post

The markets closed flat on today's session, showing some hesitation at the current resistance level. All three majors are positive for the week as we enter into April monthly option expiration. We could see another tight range tomorrow – or even a bearish move back into the range. Either way, we don't expect levels to be broken until sometime next week.

Without a break of support or resistance, we should focus on sideways in the short term. Take full advantage of weekly expiration cycles, but be aware of earnings dates (i.e., make sure to double check earnings dates since we are in earnings season).

Options expiration for April is tomorrow, so make sure to close and/or adjust your positions according to your plan. Not much has changed this week, as the markets are still in a high basing pattern.

Have a great night,

Your Maverick Trading Team

Tuesday, April 12, 2016

End Of Day Post

The markets continued to consolidate and are starting to form a base at the current levels. We have seen some volatile market action over the last few sessions, but still no ground gained or lost in the overall trend. The longer the markets consolidate, the more significant the support and resistance level. This could lead to a decent move away from their current level once the markets take a direction.

Outlook should still lean to the bullish side, as this looks to be a High Base pattern beginning to form. April monthly expiration is this Friday, and given the current market pattern, we should expect to stay within this current range until next week. That being said, anything can happen, so make sure it does before making any drastic changes.

Have a great night,

Your Maverick Trading Team

Thursday, April 7, 2016

End Of Day Post

This current market level proved volatile, as the markets gave back all of yesterday's gains. Over the last three sessions, we have seen some pushing and pulling going on between the bulls and the bears, with neither gaining much ground over the other so far.

This is the first time in a while that we have seen this much selling in one week. We have yet to break support levels, so we should continue to treat this as a correction.

We should expect volatility to continue the longer the markets remain in this area. Stay patient and don't get sucked into making a bad decision.

Have a great night,

Your Maverick Trading Team

Tuesday, April 5, 2016

End of Day Post

We could be seeing signs of a small market correction this week, as the markets posted their second loss in a row. Seeing the markets put in two consecutive lower days has been a rarity over the last couple months, although they are now approaching some key levels. We haven't seen these market ranges since last October/November, so hesitation by the bulls would make sense.

Regardless of the last two days, the overall bull trends are still holding in all three majors. With a week and a half left in April's expiration and at the current market levels, moving to a more neutral outlook would make sense. Don't be in any hurry to add more directional exposure here; instead, try and focus on shorter-term sideways plays.

Have a great night,

Your Maverick Trading Team