The markets closed above resistance levels today, but volume still remained light. Today's move makes a strong case that this bearish trend could be ending; however, we would like to see volume pick up if this bull move continues.
Both the S&P and INDU closed above their 50-day moving averages, along with exceeding resistance levels. These are both bullish signs, but we don't expect a straight run to the top from here – that is, if the markets continue to moving higher. Look to longer term verticals or diagonal spreads on the bull side, we could consolidate for a bit before making another push higher.
Be aware of the next levels of resistance in the markets. If we continue higher, then we will most definitely have to sit through a pullback at some point. Continue to take advantage of trades in both directions – relative strength and weakness has been pretty consistent as of late. As always, stay balanced and adjustable.
Have a great night,
The Maverick Trading Team
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Thursday, February 25, 2016
Tuesday, February 23, 2016
End Of Day Post
The markets hesitated today after threatening resistance levels on Monday. We have seen a decent move higher from the low set two Fridays ago (before the holiday weekend). Most of this bullish move was fueled by a relief bounce in energy last week, although we aren't seeing much follow-through so far.
Volume has steadily been decreasing during this bullish move, even though resistance levels are being threatened. Until we see the markets push through resistance with an increase in volume and sustain itself above it, we will still need to stay cautious in our outlook.
Technically, our outlook is still cautious to slightly bearish here. However, it could be safe to say that we have seen a bottom in these markets, at least in the near term. As always, stay balanced and adjustable until we see more conviction in market direction.
Have a great night,
Maverick Trading
Volume has steadily been decreasing during this bullish move, even though resistance levels are being threatened. Until we see the markets push through resistance with an increase in volume and sustain itself above it, we will still need to stay cautious in our outlook.
Technically, our outlook is still cautious to slightly bearish here. However, it could be safe to say that we have seen a bottom in these markets, at least in the near term. As always, stay balanced and adjustable until we see more conviction in market direction.
Have a great night,
Maverick Trading
Thursday, February 18, 2016
End Of Day Post
The bullish surge took a break today as the markets closed just shy of resistance levels. The bulls have made a very strong push this week, so a hesitation day like today is to be expected. Overall, outlook should remain bearish until the markets can break out and stay above resistance levels.
This has been the strongest bull move we have seen in 2016, and an argument could be made that a bottom has been put in. It is hard to guess bottoms or tops, so we must continue to trade the markets in front of us.
Options expiration is tomorrow and an expiration Friday can always make things interesting, especially at these levels. As always, focus on closing up February first before looking for new opportunities.
Have a great night,
Maverick Trading
This has been the strongest bull move we have seen in 2016, and an argument could be made that a bottom has been put in. It is hard to guess bottoms or tops, so we must continue to trade the markets in front of us.
Options expiration is tomorrow and an expiration Friday can always make things interesting, especially at these levels. As always, focus on closing up February first before looking for new opportunities.
Have a great night,
Maverick Trading
Tuesday, February 16, 2016
End Of Day Post
The bullish surge carried over from last week, as all three majors closed higher on the session. The last two trading sessions have seen more bullish participation than we have seen in a while. However, we should continue to stay cautious and treat this as a bear rally for now. Although the last two moves higher are impressive, they came on below average volume.
We could see another round of selling if the bears decide to step in later this week. Keep an eye on this bullish move as it approaches resistance levels – we could see bearish opportunity with confirmation of a reversal. With any market action, we need confirmation first, so stay patient.
Have a great night,
Maverick Trading
We could see another round of selling if the bears decide to step in later this week. Keep an eye on this bullish move as it approaches resistance levels – we could see bearish opportunity with confirmation of a reversal. With any market action, we need confirmation first, so stay patient.
Have a great night,
Maverick Trading
Thursday, February 11, 2016
End Of Day Post
The markets continued to move lower, but we are not seeing the conviction that we would expect in breaking support levels. The markets retraced a decent amount of the day's loses going into the close. The VIX has also been steadily climbing; however, it too hit resistance, closing below its opening price.
The bears could be gathering strength here before making another push lower, but we will need more follow-through on one of these down days. Until all the speculators (or bullish bottom fishers) are out of this market, they won't be able to truly capitulate and move higher. Continue to keep a bearish outlook in the near term and don't overcommit to the longer time frames for now.
Have a great night,
Maverick Trading
The bears could be gathering strength here before making another push lower, but we will need more follow-through on one of these down days. Until all the speculators (or bullish bottom fishers) are out of this market, they won't be able to truly capitulate and move higher. Continue to keep a bearish outlook in the near term and don't overcommit to the longer time frames for now.
Have a great night,
Maverick Trading
Tuesday, February 9, 2016
End Of Day Post
Market bearishness continued as both the S&P and Nasdaq broke lower support levels. There isn't much out there to rally these markets and we are seeing very little buying off of the lows. This continued market action could create over-extension to the downside. If this continues, then we will probably need a bear rally before we will see new opportunities to enter bearish trades.
Economic reports are light this week; however, Janet Yellen is scheduled to give testimony tomorrow. We aren't expecting much out of the testimony, but keep an eye on it just in case we see the markets react. Stay patient and let your bear trades work for you. We might see a bullish move or two, but at these levels, we can't expect it to be anything more than a bear rally.
Have a great night,
Maverick Trading
Economic reports are light this week; however, Janet Yellen is scheduled to give testimony tomorrow. We aren't expecting much out of the testimony, but keep an eye on it just in case we see the markets react. Stay patient and let your bear trades work for you. We might see a bullish move or two, but at these levels, we can't expect it to be anything more than a bear rally.
Have a great night,
Maverick Trading
Thursday, February 4, 2016
End Of Day Post
The market hesitated today after regaining all of its losses yesterday. The week started off looking very bearish until about mid-day on Wednesday. We were left with a good-sized hammer candle yesterday, associated with a decent amount of volume, thus putting an end to the move lower. We could see a higher low set this week if we can get some bullish follow-through tomorrow and a close above today's high.
Direction is still unclear at this point; however, we do have a small range established in the S&P between 1880 and 1940. We are seeing more and more opportunities out there, so don't be afraid to add positions when they trigger. Stay balanced and remember to double check for earnings announcements since we are still in earnings season.
Have a great night,
Maverick Trading
Direction is still unclear at this point; however, we do have a small range established in the S&P between 1880 and 1940. We are seeing more and more opportunities out there, so don't be afraid to add positions when they trigger. Stay balanced and remember to double check for earnings announcements since we are still in earnings season.
Have a great night,
Maverick Trading
Tuesday, February 2, 2016
End Of Day Post
The markets turned south today after another failed rally. We didn't get any follow-through from Friday's big move up, as Monday could not sustain a bullish direction. With the formation of a doji candle, along with today's bear move, it is safe to say that the markets will probably stay weak in the shorter term.
Earnings results will continue to post over the next week or so, but the market's focus is primarily on energy and overseas news. The U.S. markets have struggled to gain economic stability over the last couple of years and have done pretty good to this point; however, falling energy and overseas weakness is starting to take its toll. We have also seen some U.S. economic reports weaken over the last month or so.
Technically, we are showing very little participation from the bulls – and have been for some time. Volatility did drop over the last few days; however, there is very little buying in the markets. We should expect more weakness and don't be surprised if the volatility comes back in.
Have a good night,
Maverick Trading
Earnings results will continue to post over the next week or so, but the market's focus is primarily on energy and overseas news. The U.S. markets have struggled to gain economic stability over the last couple of years and have done pretty good to this point; however, falling energy and overseas weakness is starting to take its toll. We have also seen some U.S. economic reports weaken over the last month or so.
Technically, we are showing very little participation from the bulls – and have been for some time. Volatility did drop over the last few days; however, there is very little buying in the markets. We should expect more weakness and don't be surprised if the volatility comes back in.
Have a good night,
Maverick Trading
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