The markets moved higher today, as early polls out of the U.K. are leaning towards remaining part of the European Union. The Brexit decision is on deck and it looks like it was the main driver of the U.S. session today. These are not final numbers and the polls are still open, but optimism was definitely in full force today. All three majors advanced more than +1.25% today, with the Nasdaq posting the largest gain (+1.59%).
Once the Brexit polls are closed and the votes tallied, we should see an announcement. The problem is that the announcement will be released while the U.S. markets are closed. Regardless of today's optimism, nothing is for certain. We should see some decent volatility tomorrow regardless of the outcome, especially in the first couple hours of U.S. trading.
Keep an eye on option spreads, specifically the ones that you own or are looking to enter. These spreads are a good indicator of how much volatility is currently active in the markets. Wait for things to calm down – and the spreads to tighten back up – before trying to make trades in these markets.
See you on this Sunday's live Trading Room 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.
