All three major indices were down slightly today in choppy trading. The INDU, S&P 500 and Nasdaq were down -0.33%, -0.18% and -0.10%, respectively. The choppiness is likely attributed to tomorrow’s Fed rate announcement and the U.K. vote next week (June 23rd) on whether or not to leave the EU (the potential "Brexit").
Be careful entering into positions ahead of the FOMC's conclusion tomorrow and Fed Chair Janet Yellen's press conference. While most are expecting Yellen to be dovish, just a few words spoken by her could quickly move the markets.
The recent spike in the Volatility Index (VIX) was impressive, to say the least. There have been 35 separate instances of +30% or greater 3-day VIX explosions in the last decade and in only one was the S&P 500 down less than the current one. So far, the equity markets have just not had much of a reaction to the recent spike. That could all change tomorrow – dun dun DUNNNNN!
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.
