The markets continued to gain ground, as the current market surge extended itself even further. We only saw a slight hesitation last week – not even enough of a move lower to really call it a true correction. We are now pushing into over-extended levels in both the INDU and S&P, which could cause some difficulty in putting new bullish trades to work here.
Sentiment remains strong; however, with over-extended charts comes lower probability of bullish continuation in the short-term. This can easily be compensated for with well-placed diagonal spreads and/or being very patient in longer-term combos. Be patient with your portfolios here and don't be afraid to allow your bullish trades to run through December's expiration. Our outlook is for a slow move higher into next week's FOMC statement.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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