The markets moved lower early on in today's session, but recovered nicely into the close. All three majors posted gains today following a strong turn-around yesterday. We have seen some decent intra-day selling all week, but the markets seem to recover each day.
No major market levels have been broken – or really even tested – in the last couple of weeks. The markets continue to be complacent and moving sideways. However, there are still some great trading opportunities out there sideways to slightly bullish.
Tomorrow is August monthly options expiration. Don't forget to make the necessary adjustments to your portfolio. Be sure to follow your trading plan and stick with your outlook.
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, August 18, 2016
Tuesday, August 16, 2016
End of Day Post
The markets gave back a bit today after testing highs yesterday. All three majors came out of the gates strong on Monday morning, breaking and setting new highs, but none of them could closed on those highs. Today was a different story, as all three majors opened lower and closed on the lows of the session.
The Fed could have been a factor in today's move as officials made some hawkish comments on rising oil futures and a weakening dollar. We will hear more specifics tomorrow in the FOMC minutes scheduled for release at 2 pm ET.
We could see some more selling and the markets can absorb a few days lower here, so try not to make too many adjustments to your positions. We are closing in on another monthly option expiration date this Friday. The last few days before expiration can make or break many combo trades, so stick to your plan.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
The Fed could have been a factor in today's move as officials made some hawkish comments on rising oil futures and a weakening dollar. We will hear more specifics tomorrow in the FOMC minutes scheduled for release at 2 pm ET.
We could see some more selling and the markets can absorb a few days lower here, so try not to make too many adjustments to your positions. We are closing in on another monthly option expiration date this Friday. The last few days before expiration can make or break many combo trades, so stick to your plan.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Tuesday, August 9, 2016
End of Day Post
The markets posted another flat close as all three majors appear more than comfortable at these levels. Staying patient and taking advantage of sideways strategies (e.g., butterflies, etc.) has really paid off in the latter part of the summer. We shouldn't expect much more than the same until after the next FOMC announcement.
Earnings season should be winding down over the next week or so, but make sure that you double check with any new opportunities just in case. Making new trades based on earnings results (and any continuation in bias) can be advantageous over the next couple of weeks. Make note of the sectors and stocks that are either outperforming or underperforming – and look to take advantage, if possible.
Continue to use the power of sideways strategies and make sure to incorporate it into any directional trades as well.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Earnings season should be winding down over the next week or so, but make sure that you double check with any new opportunities just in case. Making new trades based on earnings results (and any continuation in bias) can be advantageous over the next couple of weeks. Make note of the sectors and stocks that are either outperforming or underperforming – and look to take advantage, if possible.
Continue to use the power of sideways strategies and make sure to incorporate it into any directional trades as well.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, August 4, 2016
End of Day Post
The markets managed to regain some of Tuesday's losses yesterday, but today's move didn't give any upward follow-through. We still have one day left in the week, along with the Nonfarm Payrolls report, which could send the markets in either direction. The market is expecting a drop from the previous number, down to 185k.
Volatility continues to low base here, along with the S&P. We aren't seeing these levels tested just yet, but tomorrow's Nonfarm Payrolls numbers could be a good catalyst to the upside. If the numbers come "in line" with expectations, then we could see movement to the downside, with uncertainty to the Fed's reaction of the numbers come September. Regardless of result, we will need to see how the market reacts and what is triggered.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Volatility continues to low base here, along with the S&P. We aren't seeing these levels tested just yet, but tomorrow's Nonfarm Payrolls numbers could be a good catalyst to the upside. If the numbers come "in line" with expectations, then we could see movement to the downside, with uncertainty to the Fed's reaction of the numbers come September. Regardless of result, we will need to see how the market reacts and what is triggered.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Tuesday, August 2, 2016
End of Day Post
All three majors closed down today. While INDU recovered from earlier losses in the day, it couldn't break its six-day losing streak and closed lower for the seventh day in a row, losing another -0.5% today. The S&P broke the 2,160 support level to close at 2,157, with over a -0.6% loss for the day and is now sitting right on its 20-day SMA. The Nasdaq was biggest loser on the day, giving up -0.9%, thus ending a multi-day uptrend.
Volatility picked up a bit as the VIX poked its head above near- and long-term resistance levels, closing at the highest level it has been in over two weeks. While we are seeing a controlled pullback in the markets, many eyes are on this Friday’s employment report (i.e., nonfarm payrolls).
Earnings season continues this week. Roughly two-thirds of the companies in the S&P 500 have reported as of last Friday. So far, 57% have reported Q2 2016 sales above the mean estimate and 71% have reported Q2 2016 earnings above the mean estimate.
See you on tomorrow’s Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Volatility picked up a bit as the VIX poked its head above near- and long-term resistance levels, closing at the highest level it has been in over two weeks. While we are seeing a controlled pullback in the markets, many eyes are on this Friday’s employment report (i.e., nonfarm payrolls).
Earnings season continues this week. Roughly two-thirds of the companies in the S&P 500 have reported as of last Friday. So far, 57% have reported Q2 2016 sales above the mean estimate and 71% have reported Q2 2016 earnings above the mean estimate.
See you on tomorrow’s Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, July 28, 2016
End of Day Post
Interest rates remained the same after the FOMC announcement yesterday. The Fed referred to a possible rate hike in September if near-term risk continues to diminish. There was little to no reaction to this announcement since no change to policy was expected by the markets.
We continued to build a high base pattern in both the INDU and S&P. The Nasdaq has been enjoying a good round of earnings results – with AAPL, FB and AMZN all moving higher, to name a few.
Stay patient here...the markets will move when they are ready. Continue to take advantage of short-term, sideways price action.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
We continued to build a high base pattern in both the INDU and S&P. The Nasdaq has been enjoying a good round of earnings results – with AAPL, FB and AMZN all moving higher, to name a few.
Stay patient here...the markets will move when they are ready. Continue to take advantage of short-term, sideways price action.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Tuesday, July 26, 2016
End of Day Post
The S&P and INDU closed flat on the session, regaining the majority of today's earlier losses. The Nasdaq posted a small gain today, which was enough to let it close above 5,100. Overall, we are still seeing a base form in the markets as directional opportunities are becoming scarce.
Technically, all three major markets are showing signs of basing, but in three very different ways. The S&P is creating a high base, but the INDU is forming more of a small pullback. The Nasdaq looks to still have a little bullish momentum (most likely driven by earnings) and continues to float higher.
Earnings have been mixed so far. We will see some of the bigger companies over the next week or so, starting with AAPL tonight. So far, the markets have absorbed both good and bad news, but that could change as more and more companies report. The FOMC announcement on Wednesday could shake things up; however, the markets are expecting no change in policy to be made.
Shorter-term sideways to bullish is still the play here. The more the markets base, the stronger the move out should be. Keep an eye on earnings results.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Technically, all three major markets are showing signs of basing, but in three very different ways. The S&P is creating a high base, but the INDU is forming more of a small pullback. The Nasdaq looks to still have a little bullish momentum (most likely driven by earnings) and continues to float higher.
Earnings have been mixed so far. We will see some of the bigger companies over the next week or so, starting with AAPL tonight. So far, the markets have absorbed both good and bad news, but that could change as more and more companies report. The FOMC announcement on Wednesday could shake things up; however, the markets are expecting no change in policy to be made.
Shorter-term sideways to bullish is still the play here. The more the markets base, the stronger the move out should be. Keep an eye on earnings results.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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