The markets posted another counter move to the previous day, looking to close out another range-bounded week. Even with today's move lower, we are not yet close enough to support levels to threaten a breakdown – even with another down move tomorrow. With the current market behavior and its inability to string together multiple days in the same direction, we must continue to play sideways moves.
Look to start taking advantage of earnings results. We could see some opportunities to play directional continuation post-announcement. Don't get too directionally aggressive, though. Instead, look to using shorter-term credit spreads (sideways to up/down), taking full advantage of support or resistance levels after a gap or strong directional move.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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