Yesterday, the FOMC increased interest rates by 25 basis points (0.25%), so we expected to see some sort of reaction by the markets. However, we have not seen much of an increase to volatility based on the results, so it is safe to say the Fed's decision was as expected.
While the markets managed to close today's session in the green, they did so after retracing half of their total range. Today's action didn't give us much in a directional bias at all. In fact, we haven't seen much direction at all over the past two days, which has kept a lot of our trades from triggering in both directions.
With only 2½ weeks left until the end of 2016 and tomorrow being December's options expiration, we would expect to see some sort of market direction. However, we might find ourselves sideways if investors are comfortable with their current positions through the end of the year. Make sure to make the necessary adjustments in your portfolio before tomorrow's close.
We will look at the markets this weekend to see if we can take advantage of some sideways opportunities over the next few weeks.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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