All three markets continued to look strong, with all three closing higher on today's session. However, the strongest of the three (INDU) appears to be topping out. INDU's surge into all-time highs appears to be looking for a top as it posted a third inside day. With the INDU up over 1,000 points in 10 days, we should expect some hesitation or a correction from these levels. The S&P and Nasdaq have a little more to go before they reach their upper resistance levels of 2,195 and 5,350, respectively.
Even with volatility dropping and the markets looking overextended here, there are still bullish opportunities out there. Look to use a combo with enough time to absorb any corrective action. You could also wait for a correction before entering bullish trades, taking advantage of shorter-term, sideways trades (credits) in the meantime.
November monthly options expiration is tomorrow. Be mindful of your portfolio exposure moving into December. With only one month left in the year, we might only see one or two directional changes in the markets. So, keep this in mind when moving into any new December positions.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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