The markets experienced another move higher today, making it four trading days in a row since breaking above resistance.
Today, Fed Chair Janet Yellen made a comment on the continued growth of the economy (specifically, employment and inflation). The Fed will continue to monitor the growth to see if it can stay within their 2% target. This will be one of the main factors in making a rate adjustment in the future. So, the bullish sentiment remains in control, even at these extended levels.
Technically, it can be hard to enter bullish positions when the market is over-extended. There are some bullish trades out there, but no need to force anything too aggressive. We will get a base or a pullback at some point. Be aware of your time frame when entering new trades. The longer out you go, the more you need to anticipate corrective action in your position.
See you on Wednesday's Mid-Week Trading Room Update 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.
