Tuesday, August 30, 2016

End of Day Post

The markets continued to hold at their current "basing" levels. We have seen some decent fluctuations over the last few days, but major support is still intact across all three majors. We should expect more of the same as the bulls and bears continue to test each other here. The longer the markets consolidate, the easier it will be to identify the next major catalyst, as we won't see a directional conviction without one.

Continue following sector strength/weakness and make sure to add a sideways element to both directions. Don't over-expose yourself here...the markets are not going to reward any "one" direction just yet.

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

Have a great night,

Your Maverick Trading Team

Thursday, August 25, 2016

End of Day Post

The markets have moved lower over the last two days as they were looking to test support levels. The S&P closed just above its higher support of 2,170, with major support still lower (around 2,150-2,160). The INDU is also pulling back, now about halfway between its last support level and previous resistance. The Nasdaq is still in a high base, but has also seen some decent selling the last few days.

There is no confirmation to the downside here. It is important to remember that the markets will move back and forth between support and resistance levels. It can become increasingly dangerous to watch a sideways market, as predictive impulses urge us to make trades that haven't triggered yet.

Be aware of your trading...are you entering with confirmation or are you trying to predict the next move? Continue to stay on the short-term, sideways path for now.

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

Have a great night,

Your Maverick Trading Team

Tuesday, August 23, 2016

End of Day Post

The markets are starting to tighten their ranges, especially over the last few sessions. The high base patterns in both the S&P and INDU haven't moved too far off the mark in the last few weeks. The S&P is consolidating just above its previous resistance levels, while the INDU is forming a base just below its resistance.

The markets could be building strength here, although finding a catalyst strong enough to move them outside of their ranges has proven difficult. There are plenty of things that "could" create a market move. However, we haven't seen anything to shake these markets yet. There is always the next interest rate policy...and the next...and the next.

It is probably best to keep a sideways and short-term outlook until we see some real movement.

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

Have a great night,

Your Maverick Trading Team

Thursday, August 18, 2016

End of Day Post

The markets moved lower early on in today's session, but recovered nicely into the close. All three majors posted gains today following a strong turn-around yesterday. We have seen some decent intra-day selling all week, but the markets seem to recover each day.

No major market levels have been broken – or really even tested – in the last couple of weeks. The markets continue to be complacent and moving sideways. However, there are still some great trading opportunities out there sideways to slightly bullish.

Tomorrow is August monthly options expiration. Don't forget to make the necessary adjustments to your portfolio. Be sure to follow your trading plan and stick with your outlook.

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

Have a great night,

Your Maverick Trading Team

Tuesday, August 16, 2016

End of Day Post

The markets gave back a bit today after testing highs yesterday. All three majors came out of the gates strong on Monday morning, breaking and setting new highs, but none of them could closed on those highs. Today was a different story, as all three majors opened lower and closed on the lows of the session.

The Fed could have been a factor in today's move as officials made some hawkish comments on rising oil futures and a weakening dollar. We will hear more specifics tomorrow in the FOMC minutes scheduled for release at 2 pm ET.

We could see some more selling and the markets can absorb a few days lower here, so try not to make too many adjustments to your positions. We are closing in on another monthly option expiration date this Friday. The last few days before expiration can make or break many combo trades, so stick to your plan.

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

Have a great night,

Your Maverick Trading Team

Tuesday, August 9, 2016

End of Day Post

The markets posted another flat close as all three majors appear more than comfortable at these levels. Staying patient and taking advantage of sideways strategies (e.g., butterflies, etc.) has really paid off in the latter part of the summer. We shouldn't expect much more than the same until after the next FOMC announcement.

Earnings season should be winding down over the next week or so, but make sure that you double check with any new opportunities just in case. Making new trades based on earnings results (and any continuation in bias) can be advantageous over the next couple of weeks. Make note of the sectors and stocks that are either outperforming or underperforming – and look to take advantage, if possible.

Continue to use the power of sideways strategies and make sure to incorporate it into any directional trades as well.

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

Have a great night,

Your Maverick Trading Team

Thursday, August 4, 2016

End of Day Post

The markets managed to regain some of Tuesday's losses yesterday, but today's move didn't give any upward follow-through. We still have one day left in the week, along with the Nonfarm Payrolls report, which could send the markets in either direction. The market is expecting a drop from the previous number, down to 185k.

Volatility continues to low base here, along with the S&P. We aren't seeing these levels tested just yet, but tomorrow's Nonfarm Payrolls numbers could be a good catalyst to the upside. If the numbers come "in line" with expectations, then we could see movement to the downside, with uncertainty to the Fed's reaction of the numbers come September. Regardless of result, we will need to see how the market reacts and what is triggered.

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

Have a great night,

Your Maverick Trading Team

Tuesday, August 2, 2016

End of Day Post

All three majors closed down today. While INDU recovered from earlier losses in the day, it couldn't break its six-day losing streak and closed lower for the seventh day in a row, losing another -0.5% today. The S&P broke the 2,160 support level to close at 2,157, with over a -0.6% loss for the day and is now sitting right on its 20-day SMA. The Nasdaq was biggest loser on the day, giving up -0.9%, thus ending a multi-day uptrend.

Volatility picked up a bit as the VIX poked its head above near- and long-term resistance levels, closing at the highest level it has been in over two weeks. While we are seeing a controlled pullback in the markets, many eyes are on this Friday’s employment report (i.e., nonfarm payrolls).

Earnings season continues this week. Roughly two-thirds of the companies in the S&P 500 have reported as of last Friday. So far, 57% have reported Q2 2016 sales above the mean estimate and 71% have reported Q2 2016 earnings above the mean estimate.

See you on tomorrow’s Mid-Week Trading Room Update class!

Have a great night,

Your Maverick Trading Team