The bullish march continued today with yet another close to the upside. This bullish surge appears to be a little overextended on a technical level, but trying to guess a top can get a trader into some trouble. Yesterday's doji candle could have been a possible turning point for a corrective move, but it appears that the bulls had a little left in them.
We are moving into July's monthly option expiration tomorrow, so we should expect a little volatility in the morning. There is little to do with the markets at these current levels, so spend the majority of tomorrow addressing any of your open July positions.
Once this week comes to a close, we will need to take a good look at the overall market pattern. If a correction starts, then we will look to identify opportunities once a support level is found – basically, look for bullish setups during a market pull back. If the markets continue higher, then we can still take advantage of some short-term, sideways strategies.
Keep an eye out for earnings dates with any new trade setups and existing trades as we enter into this quarter's earnings season.
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.
Thursday, July 14, 2016
Tuesday, July 12, 2016
End of Day Post
The markets continued to move higher today, displaying some bullish confidence. All three majors pushed above resistance levels and into new highs for the year. The Brexit looked to do little except fuel a bullish surge in the U.S. markets.
Volatility is back down to levels not seen since August of last year. Complacency and bullish sentiment is indeed in control here. The next question is, "When will the markets take some profits?" Even a healthy bullish move needs a pullback. However, the worst thing that you can do is to guess when it will happen.
We are coming into earnings season and July monthly options expiration is this week, so we do have some things that could slow this move down here. Keep these events in mind, but don't take action until it needs to be taken. Don't get too aggressive to the bear side if we see a bull pullback over the next week or so.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Volatility is back down to levels not seen since August of last year. Complacency and bullish sentiment is indeed in control here. The next question is, "When will the markets take some profits?" Even a healthy bullish move needs a pullback. However, the worst thing that you can do is to guess when it will happen.
We are coming into earnings season and July monthly options expiration is this week, so we do have some things that could slow this move down here. Keep these events in mind, but don't take action until it needs to be taken. Don't get too aggressive to the bear side if we see a bull pullback over the next week or so.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, July 7, 2016
End of Day Post
It appears the markets are not quite sure what to do at their current levels, showing hesitation once again today. This is a shortened holiday week, and maybe the markets are still a little tired from last week's rally, but we aren't seeing much conviction in either direction.
This is a stable area for the markets, in reference to the technicals, as long as they can hold above current support levels. During the Mid-Week Update class, we discussed the possibility of increasing sideways movement as we move deeper into the summer. There are great opportunities out there and they don't always have to be directional. Keep this in mind over the next couple of weeks...who knows how long the markets could consolidate for?
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
This is a stable area for the markets, in reference to the technicals, as long as they can hold above current support levels. During the Mid-Week Update class, we discussed the possibility of increasing sideways movement as we move deeper into the summer. There are great opportunities out there and they don't always have to be directional. Keep this in mind over the next couple of weeks...who knows how long the markets could consolidate for?
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Tuesday, July 5, 2016
End of Day Post
The markets gave back a little today as they come out of the extended holiday weekend. Today's move wasn't as volatile as we had seen last week, but volume was still decent. It is too early to tell where we go from here, although we should expect some hesitation or even a small correction after last week's huge up move.
Stay focused on price action remaining above support levels and MA's. If the markets can absorb a small pullback or stay above these levels, then we could see another move toward the highs.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Stay focused on price action remaining above support levels and MA's. If the markets can absorb a small pullback or stay above these levels, then we could see another move toward the highs.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, June 30, 2016
End of Day Post
The markets are seeming to say, "Brexit? What Brexit?" this week. All three majors have recovered most of their losses since last week's surprise Brexit "Leave" announcement.
For the third day in a row, all three majors were positive, each closing up over +1.3% today. The S&P 500 and Dow both broke through their 50-day SMAs, while the Nasdaq just inched above both its 50- and 200-day SMAs. Interestingly, the last three days' gains have all come on decreasing volume.
The second quarter of 2016 ended at the close of market today. While the both the Dow and the S&P 500 are up slightly in 2016 (around +2.7%), the Nasdaq is down over -3% year-to-date.
With only one day left before the U.S. holiday weekend, we do not expect much volume in the markets tomorrow but we could see some volatility. Attend to any weekly options positions that expire tomorrow and keep an eye on where we close out the week.
Don't forget, we are skipping the Trading Room this weekend due to the holiday.
Have a great holiday, everyone!
Your Maverick Trading Team
For the third day in a row, all three majors were positive, each closing up over +1.3% today. The S&P 500 and Dow both broke through their 50-day SMAs, while the Nasdaq just inched above both its 50- and 200-day SMAs. Interestingly, the last three days' gains have all come on decreasing volume.
The second quarter of 2016 ended at the close of market today. While the both the Dow and the S&P 500 are up slightly in 2016 (around +2.7%), the Nasdaq is down over -3% year-to-date.
With only one day left before the U.S. holiday weekend, we do not expect much volume in the markets tomorrow but we could see some volatility. Attend to any weekly options positions that expire tomorrow and keep an eye on where we close out the week.
Don't forget, we are skipping the Trading Room this weekend due to the holiday.
Have a great holiday, everyone!
Your Maverick Trading Team
Tuesday, June 28, 2016
End of Day Post
The markets made a strong move higher today, as all three majors closed on the highs of the session. Bounces are usually expected after moves like we have seen over the last couple of days. However, when it's associated with good volume and a drop in the VIX, it could be something more.
Today left us with a marubozu candle formation. Today's candle formation also includes a small gap to the upside, about 1/4 the way up yesterday's candlesticks on both the S&P and INDU. We should see some continuation from this pattern at least part of the day tomorrow, as the markets will now test previous support as resistance.
Outside of the Brexit's impact on the U.S. markets, the U.S. economy continues to stay stable. We don't want to guess a bottom in these markets, but if they can get back above major support levels, then we could see some buying opportunity later this week.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Today left us with a marubozu candle formation. Today's candle formation also includes a small gap to the upside, about 1/4 the way up yesterday's candlesticks on both the S&P and INDU. We should see some continuation from this pattern at least part of the day tomorrow, as the markets will now test previous support as resistance.
Outside of the Brexit's impact on the U.S. markets, the U.S. economy continues to stay stable. We don't want to guess a bottom in these markets, but if they can get back above major support levels, then we could see some buying opportunity later this week.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, June 23, 2016
End of Day Post
The markets moved higher today, as early polls out of the U.K. are leaning towards remaining part of the European Union. The Brexit decision is on deck and it looks like it was the main driver of the U.S. session today. These are not final numbers and the polls are still open, but optimism was definitely in full force today. All three majors advanced more than +1.25% today, with the Nasdaq posting the largest gain (+1.59%).
Once the Brexit polls are closed and the votes tallied, we should see an announcement. The problem is that the announcement will be released while the U.S. markets are closed. Regardless of today's optimism, nothing is for certain. We should see some decent volatility tomorrow regardless of the outcome, especially in the first couple hours of U.S. trading.
Keep an eye on option spreads, specifically the ones that you own or are looking to enter. These spreads are a good indicator of how much volatility is currently active in the markets. Wait for things to calm down – and the spreads to tighten back up – before trying to make trades in these markets.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Once the Brexit polls are closed and the votes tallied, we should see an announcement. The problem is that the announcement will be released while the U.S. markets are closed. Regardless of today's optimism, nothing is for certain. We should see some decent volatility tomorrow regardless of the outcome, especially in the first couple hours of U.S. trading.
Keep an eye on option spreads, specifically the ones that you own or are looking to enter. These spreads are a good indicator of how much volatility is currently active in the markets. Wait for things to calm down – and the spreads to tighten back up – before trying to make trades in these markets.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
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