There was another strong move higher today, as all three majors experienced a strong surge from the bulls coming out of the extended holiday weekend. The markets continued to show strength – and not with small moves here and there either. We are seeing some very strong bullish moves, as it appears that there is no fear in the markets at all.
Technically, we are looking very extended. This move is almost starting to feel reckless at these levels. There is no doubt that investors are still putting money to work, but the further the markets extend themselves, the stronger the correction could be. This "rubber band" theory can create a fear of entering new bullish trades, but there is still opportunity out there.
Try not to anticipate the next correction. Instead, look for some sideways to bearish trades over the next couple of weeks. Longer-term bullish trades should be able to absorb a good week or so of corrective action. Look to late-March or early-April for any new bullish positions.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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