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
Over the years, we have spent thousands of hours talking with our traders and answering their emails. We have a huge collection of really great information that only benefited the specific traders who we were interacting with. So, we decided to start sharing all of these gems of knowledge with everyone.
Tuesday, February 28, 2017
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
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
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
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
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
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
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
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
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