Thursday, May 18, 2017

End of Day Post

The markets made a small recovery today after a sizable sell-off yesterday. Not only did all three majors close significantly lower on Wednesday, but the move was also accompanied by a 46% spike in the VIX.

The complacency of these markets has been going on a long while – pretty much since December of last year. Volatility seemed to all but disappear over the last couple of weeks as the VIX dropped to historical lows in late-April. Just like an overextension in any chart, we were bound to see some sort of correction or bounce.

May's monthly options expire tomorrow. With the heightened volatility out there, it could take a little longer to get orders filled, especially with another downturn in the markets. If possible, start early and be patient with any limit orders. Be mindful of the intrinsic value your position carries and use that to gauge a fair price for your limit order.

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

Have a great night,

Your Maverick Trading Team

Tuesday, May 16, 2017

End of Day Post

The S&P hesitated at resistance today, as the Nasdaq continued to march higher. The INDU continued to consolidate below its all-time highs, forming a decent base. Volatility remained at historical lows. We haven't seen any urgency by the bulls or the bears to move these markets.

Summer is just around the corner. With May expiration later this week, June is already upon us. Usually, it's the summers that are slow, but we really haven't seen much market activity since late-April.

Continue to keep a sideways outlook in the near term...there could still be some decent sideways plays left in May.

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

Have a great night,

Your Maverick Trading Team

Tuesday, May 9, 2017

End of Day Post

The markets continued to consolidate at their current levels, with only the Nasdaq showing continued expansion. Although it is very slight, the Nasdaq continues to creep higher, mostly due to earnings results and some speculative investing.

There really isn't much out there to trigger a move higher or lower at this point. The markets could really use a catalyst since economic factors aren't giving any signs of expansion or a slowdown.

Continue to stay patient and light in directional exposure. There is no need to put too much to work here as the markets continue to consolidate. Short-term sideways is probably best 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

Tuesday, May 2, 2017

End of Day Post

All three majors closed flat today after starting the day higher. The markets opened slightly higher today, but couldn't hold on to the majority of their gains. We are starting to see some consolidation forming in the INDU and S&P over the last few sessions. However, the Nasdaq continues to move higher, fueled by earnings results.

Volatility remains low, but the markets seem comfortable at these levels. It has been about five (5) days since we had the surge higher in these markets. Since then, we really haven't seen much. That being said, continued earnings results could play a part in the near future.

Keep an eye on earnings results. We can capitalize on stocks after their earnings announcements by looking for continuations of bullish and bearish patterns.

NOTE: There will NOT be a Wednesday Mid-Week Trading Room Update class this week! The class has been cancelled since the Maverick Trading Team will be flying to the Maverick Trading Summit in Chicago.

Have a great night,

Your Maverick Trading Team

Tuesday, April 25, 2017

End of Day Post

The markets surged higher this week, as the Nasdaq broke above 6,000. Economic data has been solid over the last few months. With the help of some strong earnings results, along with good overseas news, the markets could break higher.

The markets have been waiting for a catalyst to make a directional move. With the results of the French election, coupled with continued strong earnings, the markets appear to have received the catalyst that they were searching for. The French election results relieved some of the worries over the future of the euro and the European Union, which most likely attributed to Monday's U.S. market rally.

Today's action was follow-through from Monday, further stimulated by strong earnings results of some of the bigger INDU components.

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

Have a great night,

Your Maverick Trading Team

Tuesday, March 28, 2017

End of Day Post

All three majors continued higher today after bouncing off their 50-day moving averages yesterday. Sentiment is still leaning to the bullish side with what appears to be a bull pullback to this point; however, we will need to keep our eyes on support levels moving forward. A close below the markets’ current support levels would not be seen as bearish, but would make a strong argument for more consolidation/sideways.

We have seen some bullish trades trigger this week and there are plenty of good trades out there to the upside. If you find your portfolio too bullish, then look to add some sideways trades. Depending on if the markets will retest upper resistance in the next few weeks vs. next few days, we should see sideways trade opportunities.

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

Have a great night,

Your Maverick Trading Team

Thursday, March 23, 2017

End of Day Post

The markets started the day strong, but could not hold gains and closed flat on the session. After Tuesday's bearish surge, we were expecting to see more selling. However, this was not the case. In fact, the market was on its way to establishing a support pivot at its current level.

Today's late session weakness is most likely attributed to the delay of the healthcare vote, which was scheduled for today. The markets did close above minor support levels, but gave up all their gains. Keep an eye on these support levels to see if the pivot forms or fails.

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

Have a great night,

Your Maverick Trading Team

Tuesday, March 21, 2017

End of Day Post

The markets made a strong move lower today – the first that we have seen in a while. All three majors gave back more than -1% today, with the Nasdaq closing down over -1.8% on the day.

The VIX moved higher, but didn't manage to break above 13, settling at 12.50. This doesn't mean that the bearish move is over and that the markets are due for a change of direction here, but we have seen the bulls answer days like today in the past.

Don't be afraid to add bearish plays here, since today's range and volume both show promise to some bearish follow-through over the next few days. However, do not abandon the bullish side just yet. Although we did close below support levels, they are minor support levels overall. Keep in mind volatility's effect on option premiums and be patient with your limit orders...don't chase trades!

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

Have a great night,

Your Maverick Trading Team

Thursday, March 16, 2017

End of Day Post

The markets hesitated today after making a decent move higher yesterday. The FOMC raised interest rates by 25 basis points (0.25%), which was in line with market expectations. We saw an almost direct rally after the announcement, retracing only slightly into the close.

We expected a little hesitation like today's move after the FOMC event and initial reaction. Although the markets closed lower, it was on less volume and did not retrace much of yesterday's gains. This action should lean our bias toward the bullish side. We might see another flat to slightly lower day tomorrow; however, if the markets push higher, then we should look to adding bullish trades going into the weekend.

Monthly options expiration for March is tomorrow. Make sure to close out anything that expires and/or make necessary adjustments.

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

Have a great night,

Your Maverick Trading Team

Tuesday, March 14, 2017

End of Day Post

The markets appeared to have settled on the current support levels. Volume has subsided, for the moment, and even though the VIX moved higher, it never made it past 12.50.

There hasn't been any real change in market sentiment, so we are still very bullish. This correction hasn't threatened any real support levels or shown signs of making any major tests of support in general. Things can always change; however, we don't expect much movement between now and the end of the week without a catalyst.

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

Have a great night,

Your Maverick Trading Team

Thursday, March 9, 2017

End of Day Post

All three majors posted doji candles today on their respective support levels. This correction has been consistent and steady over the last week. Volume has remained steady, but today was a little higher than the last few days' average.

The next technical step will be to establish a pivot point at this level. This would confirm a bull pullback. We could see more selling tomorrow, so consider waiting until we get a close above a previous day's high before entering bullish trades.

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

Have a great night,

Your Maverick Trading Team

Tuesday, March 7, 2017

End of Day Post

The markets continued to move lower this week, as we are now starting to string together a small correction. The markets are indeed pulling back here...and with very little intra-day volatility. The VIX remains low and overall market volume remains average while we wait to see what happens at the next support levels. Look to 20,800, 2,350 and 5,800 on the INDU, S&P and Nasdaq, respectively.

The markets are still in corrective mode here. Although it appears to be a light pullback so far, we should expect some sort of push lower by the bears before the markets turn higher. Keep an eye on the above-mentioned support levels and market volume.

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

Have a great night,

Your Maverick Trading Team

Thursday, March 2, 2017

End of Day Post

The markets closed down today; however, more significantly, they closed near the lows of the day. We haven't seen a candle like today's candle since late December 2016. Today's candle followed a strong surge and gap higher in the markets. We could be seeing the first signs of exhaustion here. As always, tomorrow's candle will tell us more.

We may be seeing the beginning of a correction. If this is the case, then we need to treat it simply as a correction and not necessarily something more nefarious. There are many different points where the markets could correct to or consolidate on.

Look to adding sideways positions in the short term, but don't give up your longer-term bullish outlook. Sideways positions should help if the markets correct strong or simply consolidate.

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

Have a great night,

Your Maverick Trading Team

Tuesday, February 28, 2017

End of Day Post

The INDU ended its streak of consecutive new highs at 12 today, a record not seen since 1987. All three majors experienced a decent amount of volume today, coupled with a small spike in the VIX to just shy of 13.

We have seen moves like this throughout this run, but today's volume should raise an eyebrow, as it comes just before a Presidential speech. The markets will be looking for any sort of insight into government policies that could impact further growth in the economy, as well as justify or hinder continued market expansion.

We could be in for a reactive finish to the week – based on what is said tonight and the market's reaction. Try to focus on price action and where it moves the markets and not so much over political or personal bias. Your opinion shouldn't drive your trading...only price action should.

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

Have a great night,

Your Maverick Trading Team

Thursday, February 23, 2017

End of Day Post

The markets took a break today, showing the first signs of slowing in a long while. We are still far from confirming any corrective action, since we need to confirm a high pivot first. The INDU and the S&P both closed positive, but the price action wasn't as bullish as we have seen over the last few weeks. The Nasdaq did finish lower, but off the lows of the day.

As stated above, we will need a technically-formed pivot high before we can look for any sort of correction. Continue to stay patient as we close out another week.

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

Have a great night,

Your Maverick Trading Team

Tuesday, February 21, 2017

End of Day Post

There was another strong move higher today, as all three majors experienced a strong surge from the bulls coming out of the extended holiday weekend. The markets continued to show strength – and not with small moves here and there either. We are seeing some very strong bullish moves, as it appears that there is no fear in the markets at all.

Technically, we are looking very extended. This move is almost starting to feel reckless at these levels. There is no doubt that investors are still putting money to work, but the further the markets extend themselves, the stronger the correction could be. This "rubber band" theory can create a fear of entering new bullish trades, but there is still opportunity out there.

Try not to anticipate the next correction. Instead, look for some sideways to bearish trades over the next couple of weeks. Longer-term bullish trades should be able to absorb a good week or so of corrective action. Look to late-March or early-April for any new bullish positions.

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

Have a great night,

Your Maverick Trading Team

Thursday, February 16, 2017

End of Day Post

The markets showed the first sign of slowing after six (6) consecutive sessions higher. Volatility remained on all-time lows, although we did see an intra-day spike up to 12.86 on the VIX. The markets appeared to react to some uncertainty in new tax laws, along with changes to healthcare, coming in the near future. This could hinder further movement in the markets in the short term or even create some corrective action.

Whenever price action surges, in either direction, it will eventually need to correct. The trick is in identifying when the correction will take place. The first sign is hesitation (e.g., a reversal candle, etc.). We will then need to see a move lower, confirming the reversal signal. This can get tricky unless it is tied to a catalyst of some sort. Keep an eye out for possible news catalysts as we head into the long holiday weekend.

Remember, February options expire tomorrow and the U.S. markets are closed on Monday. Make sure that you are prepared and make the necessary adjustments to your portfolio.

See you on this week's live Trading Room class (moved to Monday night due to holiday)!

Have a great night,

Your Maverick Trading Team

Tuesday, February 14, 2017

End of Day Post

The markets experienced another move higher today, making it four trading days in a row since breaking above resistance.

Today, Fed Chair Janet Yellen made a comment on the continued growth of the economy (specifically, employment and inflation). The Fed will continue to monitor the growth to see if it can stay within their 2% target. This will be one of the main factors in making a rate adjustment in the future. So, the bullish sentiment remains in control, even at these extended levels.

Technically, it can be hard to enter bullish positions when the market is over-extended. There are some bullish trades out there, but no need to force anything too aggressive. We will get a base or a pullback at some point. Be aware of your time frame when entering new trades. The longer out you go, the more you need to anticipate corrective action in your position.

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

Have a great night,

Your Maverick Trading Team

Thursday, February 9, 2017

End of Day Post

All three majors pushed through resistance today, closing above previous highs. Today's move was the one that we had been anticipating as we have been watching these markets high base for a few weeks. This is a bullish sign and confirms market sentiment higher. Don't expect the markets to race straight up from here, but don't be afraid to increase a little more bullish exposure either.

Technically, we confirmed a breakout pattern in the majors. It would be nice to see some strong follow-through tomorrow. Keep to the current outlook and, as you see below, it is right in line with these markets.

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

Have a great night,

Your Maverick Trading Team

Tuesday, February 7, 2017

End of Day Post

The markets continued to stay in a high range, but aren't showing much conviction to do more. Earnings results are still coming out, some good and some bad, but still not enough to get the markets moving. Volatility remains low, so keeping a Maverick Outlook of +1 continues to make sense here.

Technically, the markets are in high basing/ascending triangle patterns. These patterns do take time to build energy before they break out. If we continue to see this type of market action, then we could see a push above resistance later this week. This move can come intra-day as well, but it must close above resistance levels to confirm.

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

Have a great night,

Your Maverick Trading Team

Thursday, February 2, 2017

End of Day Post

There was little to no reaction in the markets today, following an uneventful FOMC statement. The Fed made no changes to interest rates yesterday. Even with increasing confidence numbers, the Fed continues to see moderate economic growth. Sentiment remains to the bullish side, as we look to close out the first week of February.

All three majors look to be in consolidation mode here. We have yet to find a catalyst to move the markets one way or the other. Earnings results are creating some volatility in individual stocks, but we are still waiting to see the overall impact on the markets.

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

Have a great night,

Your Maverick Trading Team

Tuesday, January 31, 2017

End of Day Post

The S&P recovered the majority of its losses and the Nasdaq edged out a small gain. The INDU closed down over 0.5%, but it also managed to recover most of its losses. We have seen some corrective action over the last few sessions, as all three majors have moved back into their respective ranges.

With a high base breakout comes a retest of previous resistance. This has been the case for the markets this week. Over the last two days, we have seen the markets move lower. However, both days closed well off the lows of the session. This leaves us with hammer candles, showing signs of reluctance in bearish conviction.

We are still in a bullish trend here. The last few days should not be seen as anything more than a retest of support (so far). We will have an FOMC announcement tomorrow midday, which can always have an impact on sentiment. Keep to your current outlook until the markets tell us otherwise.

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

Have a great night,

Your Maverick Trading Team

Thursday, January 26, 2017

End of Day Post

The markets paused today after making a strong push through resistance yesterday. It takes a lot of energy for the markets to gap higher, so seeing some hesitation over the next day or two is to be expected. Yesterday's surge didn't have a catalyst attached to it, which leads us to believe it was just a bullish surge that the bears didn't want to sell.

We could be seeing the start of a bullish move here with a gap above a stubborn resistance level that the markets have been struggling with over the last two months. However, it could also be a "blow off top," which could create profit taking and, in turn, start some corrective action. Either way, we don't have enough data to go on just yet. Let's see if tomorrow gives us more to move on.

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

Have a great night,

Your Maverick Trading Team

Tuesday, January 24, 2017

End of Day Post

The markets made strong moves higher today, after pushing and pulling against themselves for a couple of weeks now. The Nasdaq has been the exception, however, as it is broke into new highs today.

We are still in earnings season and will continue to see results as they are posted. The market sentiment appears to be making a push to the upside, as economic indicators continue to show stability. We will see a decent amount of economic results over the rest of the week leading into next week's FOMC announcement (scheduled for Wednesday, February 1st).

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

Have a great night,

Your Maverick Trading Team

Thursday, January 19, 2017

End of Day Post

All three majors lost ground today, but it is the INDU that is starting to show some real weakness. The INDU closed below previous support of 19,750 today on average volume. That makes five sessions in a row where the INDU has closed lower. The Nasdaq and S&P are still in consolidation patterns. So, outside of this current test of support by the INDU, nothing has really changed.

January monthly options expiration is tomorrow, so make the necessary adjustments to your portfolios as we move into February. Keep checking earnings dates on any setups that you come across over the next couple of weeks.

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

Have a great night,

Your Maverick Trading Team

Tuesday, January 17, 2017

End of Day Post

The markets lost a little ground coming out of the U.S. holiday, but not enough to really gauge any sort of change. The S&P and INDU are still above lower support levels...well within their ranges. The Nasdaq did move lower as well, but still only one day below a new high set last Friday.

Nothing new to report with only one trading day complete after the holiday. We did see a drop in the Empire State Index from 7.6 to 6.5, showing some slowing in manufacturing. However, we still have a few more numbers left to see this week.

If we continue to see some slowing in the economic numbers over the next couple of weeks, then it should reduce the possibility of another rate increase by the Fed. It's too early to tell with only one day past us this week, but we should take it into consideration moving forward.

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

Have a great night,

Your Maverick Trading Team

Thursday, January 12, 2017

End of Day Post

We had another long-shadowed day, as the markets regained most of their losses. We have seen this pattern of intraday retracements for about a week now in the S&P and INDU...and today was no different. There hasn't been enough change to the market patterns over these last few days, which we can use to our advantage. However, we could see a test of the highs tomorrow, which might create some opportunities.

Keeping a balanced portfolio, with some short-term sideways, could prove profitable through earnings season. Not much has triggered over the past few days, so don't expect much follow through in either direction until the markets break out (up or down). Just make note of the earnings dates on any new trade ideas.

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

Have a great night,

Your Maverick Trading Team

Tuesday, January 10, 2017

End of Day Post

The markets continued to show sideways action at their current levels. The INDU and SPX continued to build high-basing patterns, while the Nasdaq continued to push higher. We haven't seen much change to volatility or volume in the last couple of weeks. We don't expect any real market direction without a catalyst.

There are some good trades out there, so continue to take advantage of what triggers. Be aware of earnings results picking up as we move towards the end of this month and into February. We will see 2017's first FOMC statement in about three weeks. Keep this in mind when selecting the time frames of any new trades that you are entering.

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

Have a great night,

Your Maverick Trading Team

Thursday, January 5, 2017

End of Day Post

It has only taken two days for the markets to get back to previous basing levels as we begin 2017. We were looking to see if momentum could carry us higher, but the markets seem reluctant to move much higher from here. We didn't expect a "major" market move this week; however, a clear direction would have been nice.

Take advantage of basing patterns in the short term. Make sure that anything directional has a theta advantage (credit spread or diagonal combos).

There are some good trades out there, but make sure that you allow them to trigger before entering anything directional. Build your portfolio slowly over the next few weeks. Take into consideration earnings and the next FOMC statement later this month.

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

Have a great night,

Your Maverick Trading Team

Tuesday, January 3, 2017

End of Day Post

All three majors gapped higher today, but didn't move much higher from there. The 2017 trading year started out strong, as all markets gapped up from last week's/year's close, moving back into higher basing ranges.

Today's volume almost doubled the prior five trading day's average. This was to be expected after the extended holiday season. With only one trading day posted in 2017, it becomes very difficult to make a decision on market direction. However, today's gap higher does take away from a straight move lower based on last week's move. This isn't to say that we don't move lower from here, but take into consideration the comparative volume...if we don't see at least that amount on the next push lower, then we shouldn't put much faith in it.

We just started the week/year, so stay patient and let's see where we go from here.

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

Have a great night,

Your Maverick Trading Team