It has only taken two days for the markets to get back to previous basing levels as we begin 2017. We were looking to see if momentum could carry us higher, but the markets seem reluctant to move much higher from here. We didn't expect a "major" market move this week; however, a clear direction would have been nice.
Take advantage of basing patterns in the short term. Make sure that anything directional has a theta advantage (credit spread or diagonal combos).
There are some good trades out there, but make sure that you allow them to trigger before entering anything directional. Build your portfolio slowly over the next few weeks. Take into consideration earnings and the next FOMC statement later this month.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Over the years, we have spent thousands of hours talking with our traders and answering their emails. We have a huge collection of really great information that only benefited the specific traders who we were interacting with. So, we decided to start sharing all of these gems of knowledge with everyone.
