The markets moved higher today as volatility continued to drop. Since Election Day, we have seen the markets steadily move higher. We don't want to associate the move with the election results, but more with the "knowing of the unknown" – i.e., allowing for money to come back in from the sidelines. This doesn't mean that we will continue higher; however, with the drop in volatility, we should expect to at least test previous highs.
The INDU has surged into new highs and the S&P is now testing the 2,180 level. The Nasdaq is the laggard of the three majors, but is now moving back into its higher range. There isn't much left this year as far as scheduled major events, save the FOMC statement in December. The expectations are for a rate increase, similar to last year. Regardless of the decision, the markets should react.
Keep balanced and don't be afraid to enter new positions here. We are seeing great opportunities in all three directions: bullish, bearish and sideways. Just be mindful of your timeframe.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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