End of Day Post

The markets closed flat today after a small move lower yesterday. Market volume is still well below average, but we did see a small increase in yesterday's move lower. Although all three majors moved lower yesterday (by less than 1%), we are still in a strong uptrend. We haven't come close to threatening any major support levels. With just one more day left in the trading year, we don't expect any sort of major confirmation in either direction.

The markets will be closed on Monday, January 2, in recognition of the holiday. Take your time in scanning and building a watch list. We don't expect to see much opportunity until later next week, depending on how the markets react to the New Year.

We will NOT have a Trading Room this Sunday due to the holiday. Instead, we will see you next Wednesday, January 4, for the Mid-Week Update.

Happy New Year, everyone!

Your Maverick Trading Team

End of Day Post

All three majors opened higher today as we came out of the first of two extended holiday weekends. We saw a small surge of buying come into the markets late on Friday's session, which could be the reason that we gapped higher today. However, all three of the majors failed to capitalize on last week's surge.

We still have three (3) more trading days left in the year. However, with another extended holiday weekend just around the corner, we shouldn't put much value in this week's move.

The INDU made another push towards the 20,000 level today and we could see a close above it this week. Without a substantial amount of volume behind a close at that level, we don't want to take the risk of buying in too early.

Be patient and enjoy the holiday season. There haven't been any substantial changes to market sentiment in the last 10 days. With just a few trading days left in the year, we don't expect anything different.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

The markets closed in the red today, but not by much and with very light volume. We don't anticipate too much movement tomorrow as we head into the extended holiday weekend. The market's range should start to tighten up over the last couple weeks of the year. We would need some sort of catalyst to move very far from the current levels.

That being said, we could see some strange moves intra-day tomorrow. Keep in mind the overall volume and the fact that it will most likely be corrected later in the day or early next week. Don't get pulled into a trade based on intra-day movement. Keep an eye on the VIX since a low volume move can sometimes be mistaken for a spike in volatility.

We don't have a clear advantage in placing new trades here. So, it's a great time to spend with family, friends and eggnog.

We will NOT have a Trading Room this Sunday due to the holiday. Instead, we will see you next Wednesday, December 28, for the Mid-Week Update.

Happy Holidays and Merry Christmas!

Your Maverick Trading Team

End of Day Post

The markets continued to test their current highs, but couldn't get that final push. With the Fed out of the way for the rest of the year, we are only left with sentiment. The 20,000 level for INDU is a psychological number that will carry weight over these last two weeks in 2016.

Although INDU continued to surge higher, the other two majors appear to be establishing nice high bases here. Volatility continued to move lower, with the VIX looking to roll over and test lows. We just aren't seeing any selling pressure, so the markets could top out here for a little while. Look to some sideways strategies over the next couple of weeks.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

Yesterday, the FOMC increased interest rates by 25 basis points (0.25%), so we expected to see some sort of reaction by the markets. However, we have not seen much of an increase to volatility based on the results, so it is safe to say the Fed's decision was as expected.

While the markets managed to close today's session in the green, they did so after retracing half of their total range. Today's action didn't give us much in a directional bias at all. In fact, we haven't seen much direction at all over the past two days, which has kept a lot of our trades from triggering in both directions.

With only 2½ weeks left until the end of 2016 and tomorrow being December's options expiration, we would expect to see some sort of market direction. However, we might find ourselves sideways if investors are comfortable with their current positions through the end of the year. Make sure to make the necessary adjustments in your portfolio before tomorrow's close.

We will look at the markets this weekend to see if we can take advantage of some sideways opportunities over the next few weeks.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

All three majors continued higher as we move into tomorrow's FOMC statement. This is the last scheduled FOMC announcement for 2016. The market is expecting a raise of 25 basis points (0.25%).

Market sentiment has been primarily bullish for over a month now, as the charts continue to break through resistance levels. Any change to interest rates will have an impact on the markets. However, the economy remains strong and a higher interest rate increases the strength of the dollar moving forward.

The markets, along with the U.S. Dollar, have been moving higher for some time now. This action supports the idea that investors are expecting a rate hike tomorrow. Regardless of the Fed's action tomorrow, we will see a reaction. Be mindful of support and resistance levels, as it will definitely take more than one day for the markets to stabilize.

December's option expiration cycle is this Friday, which could make things difficult when entering new positions moving forward. Keep to the current market sentiment and follow your plan.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

The markets continued to gain ground, as the current market surge extended itself even further. We only saw a slight hesitation last week – not even enough of a move lower to really call it a true correction. We are now pushing into over-extended levels in both the INDU and S&P, which could cause some difficulty in putting new bullish trades to work here.

Sentiment remains strong; however, with over-extended charts comes lower probability of bullish continuation in the short-term. This can easily be compensated for with well-placed diagonal spreads and/or being very patient in longer-term combos. Be patient with your portfolios here and don't be afraid to allow your bullish trades to run through December's expiration. Our outlook is for a slow move higher into next week's FOMC statement.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

The markets moved higher for a second session in a row, as we look to put an end to last week's corrective move. It is too early in the week to comfortably say that the down move is indeed over, but this current market sentiment has remained bullish for some time now.

Last week's move lower has opened up some bullish opportunity. Staying in line with the current trend, we should look to take advantage of that. However, be mindful of how many bullish trades you add...you don't want to be too overexposed to the bullish side.

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

Have a great night,

Your Maverick Trading Team

End of Day Post

The INDU posted a modest gain as both the Nasdaq and S&P moved lower. All three of the majors have been showing signs of tops over the last week and a half, so corrections were expected sometime this week. However, the INDU continued to move forward, continuing to be the strongest of the three.

Keep an eye on support levels with both the S&P and Nasdaq. If their support levels can hold, then we should see some good buying opportunities moving forward.

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

Have a great night,

Your Maverick Trading Team