All three majors closed lower today, although this time with a catalyst. Reports came in today of a few hedge funds pulling out of Deutsche Bank (DB), creating some concerns of Deutsche Bank's liquidity and capital holdings. Couple this with the current Wells Fargo (WFC) situation and we could start to see some bearish market reaction.
This news could continue to have an impact on the markets over the next few sessions. We could see additional selling tomorrow, but we need to remain focused on overall support levels. Make sure that we are truly breaking down before making any major changes to your portfolio. For tomorrow, enter bearish trades and/or close bullish trades if they are triggered only if the criteria are met in your trading plan.
Once this week is finished, we can then evaluate the markets for any new changes, along with changes to our own sentiment and outlook.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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