The markets continued the same choppy pattern from last week, this time closing higher on the session. Each time the markets appear to be moving lower, we get a strong move from the bulls. This has been happening often into the closes, leaving long lower shadows and even closing positive for the day in some cases.
This week already appears to be more of the same. Monday's move lower looked to be a nice continuation of Friday's move lower and a test of support levels. Today, the markets opened higher and continued sideways through the close.
Today's action (and any further action) will most likely be caused by earnings results. We are seeing strength in some of the tech companies, which contributed to today's gap. Earnings should continue to play a role in these markets over the next week or so.
Although choppy, the markets haven't gone anywhere. Keep an eye out for upcoming earnings dates and results. Continue with a range-bound outlook until a major level is broken.
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.
Tuesday, October 18, 2016
Thursday, October 13, 2016
End of Day Post
The markets pushed hard to the downside this morning, only to recover the majority of their losses throughout the day and into the close. All three of the major markets pushed below support levels today (which looked like a repeat of Tuesday's move lower), but support held.
This has been the strongest attempt at breaking support in a while, as the VIX spiked to 18 at one point during the session. Even though support held today and we did get a substantial recovery, volatility has been climbing all week. The markets could be trying to put in a bottom here. However, until the VIX starts to decline, we can expect support to continue to be threatened.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
This has been the strongest attempt at breaking support in a while, as the VIX spiked to 18 at one point during the session. Even though support held today and we did get a substantial recovery, volatility has been climbing all week. The markets could be trying to put in a bottom here. However, until the VIX starts to decline, we can expect support to continue to be threatened.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Wednesday, October 12, 2016
End of Day Post
The bears made pushes lower today, as all three majors closed right around support levels. The INDU was the strongest of the three, down -1.1% on the session and closing just above 18,100 support. The S&P finished just below its support of 2,140, down -1.2% on the day. The Nasdaq also closed lower (down over -1.5%), but managed to settle on its 50-day MA.
Although the markets didn't close on their lows, the VIX did manage to touch 16.50 and close above 15. This level isn't a panic level by any means, but it does show more conviction than we have seen with bearish moves over the last couple weeks.
The markets are parked on support levels here and it wouldn't take much to push them lower. If the volatility can stay where it is or even a little higher, then we could see a little more downside.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Although the markets didn't close on their lows, the VIX did manage to touch 16.50 and close above 15. This level isn't a panic level by any means, but it does show more conviction than we have seen with bearish moves over the last couple weeks.
The markets are parked on support levels here and it wouldn't take much to push them lower. If the volatility can stay where it is or even a little higher, then we could see a little more downside.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, October 6, 2016
End of Day Post
No ground was gained or lost today as all three majors closed flat on the session. Volume remained steady, but volatility continued to drop as bearish moves continued to fail into the close. Although the markets refused to close on their lows, no ground was gained to the upside as well.
The current market range is definitely tightening. We are now starting to see the formation of a symmetrical triangle in both the S&P and INDU. The Nasdaq is showing more of a bullish pattern (i.e., an ascending triangle).
There really isn't enough out there technically or economically to sway our market outlook just yet. Stick to your current agenda through the end of this week. We can then look to the upcoming earnings season to maybe stir some things up.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
The current market range is definitely tightening. We are now starting to see the formation of a symmetrical triangle in both the S&P and INDU. The Nasdaq is showing more of a bullish pattern (i.e., an ascending triangle).
There really isn't enough out there technically or economically to sway our market outlook just yet. Stick to your current agenda through the end of this week. We can then look to the upcoming earnings season to maybe stir some things up.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Tuesday, October 4, 2016
End of Day Post
The markets have started this week off with two consecutive down days, but neither closed on the lows of the session. We are seeing some bearishness out there, but no conviction to the downside just yet. The volatility has also been weak, staying below 15 and closing below 14 over the last two sessions.
The markets have yet to test support levels and are still showing more of a sideways pattern than a bearish pattern. If support is tested, then we will be able to look closer at directional setups. Remember, the markets can bounce off of support as easily as it can break below it. Where the markets go from there will depend on the sentiment of the markets once it is tested.
Keep an eye on the VIX – without volatility, we shouldn't expect a move lower to last. We could see more sideways movement, so don't be too quick to abandon sideways positions just yet.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
The markets have yet to test support levels and are still showing more of a sideways pattern than a bearish pattern. If support is tested, then we will be able to look closer at directional setups. Remember, the markets can bounce off of support as easily as it can break below it. Where the markets go from there will depend on the sentiment of the markets once it is tested.
Keep an eye on the VIX – without volatility, we shouldn't expect a move lower to last. We could see more sideways movement, so don't be too quick to abandon sideways positions just yet.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Thursday, September 29, 2016
End of Day Post
All three majors closed lower today, although this time with a catalyst. Reports came in today of a few hedge funds pulling out of Deutsche Bank (DB), creating some concerns of Deutsche Bank's liquidity and capital holdings. Couple this with the current Wells Fargo (WFC) situation and we could start to see some bearish market reaction.
This news could continue to have an impact on the markets over the next few sessions. We could see additional selling tomorrow, but we need to remain focused on overall support levels. Make sure that we are truly breaking down before making any major changes to your portfolio. For tomorrow, enter bearish trades and/or close bullish trades if they are triggered only if the criteria are met in your trading plan.
Once this week is finished, we can then evaluate the markets for any new changes, along with changes to our own sentiment and outlook.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
This news could continue to have an impact on the markets over the next few sessions. We could see additional selling tomorrow, but we need to remain focused on overall support levels. Make sure that we are truly breaking down before making any major changes to your portfolio. For tomorrow, enter bearish trades and/or close bullish trades if they are triggered only if the criteria are met in your trading plan.
Once this week is finished, we can then evaluate the markets for any new changes, along with changes to our own sentiment and outlook.
See you on this Sunday's live Trading Room class!
Have a great night,
Your Maverick Trading Team
Tuesday, September 27, 2016
End of Day Post
The markets have been showing some indecision since last week's Fed announcement. Although the Fed agreed that it would not make a change to interest rates, the markets can't seem to agree on a direction. Initially, the markets moved higher on both Wednesday and Thursday after the Fed announcement last week. Then, over the last two trading days (Friday and Monday), the markets gave back all of those gains.
Today's action was bullish, although all three majors seemed to plateau into the close. Since the Fed announcement, no major levels have been broken. It appears that the markets are unclear as to what their next moves will be.
Wait for confirmation before changing your outlook too drastically. Remain cautious, but don't be afraid to take opportunities as they present themselves.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
Today's action was bullish, although all three majors seemed to plateau into the close. Since the Fed announcement, no major levels have been broken. It appears that the markets are unclear as to what their next moves will be.
Wait for confirmation before changing your outlook too drastically. Remain cautious, but don't be afraid to take opportunities as they present themselves.
See you on Wednesday's Mid-Week Trading Room Update class!
Have a great night,
Your Maverick Trading Team
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