A rare sleep in morning for me so I will make this short this morning.
Markets are quiet 15 min before the open with the only premarket gaps of interest are IBB off 2% and GLD up 3/4%. Less significant is GS off almost .5%
I am long and looking to get longer although the sentiment is reaching extremes short term so it would not surprise me to get a pullback going into December 16th. If we do I will be very aggressive for the last two weeks of the year.
On the transition front, the recounts are moving along with no indication of a change in the results. More importantly, the CEO of Time-Warner came out with a statement positive to Trump and negative towards the Democrats. This is an 180 reversal from the tone from the election to the present. This could indicate a big shift in the tone of the Time-Warner news that has to date been very hostile to the Republicans.
Almost immediately after his announcement you had Zakaria and Cooper say some positive things about Trump.
However, this does not change Media Matters position and they are getting more hostile every day to the transition and to the Trump team. I doubt they will soften up. But the Time-Warner change is significant as it will help with the transition tone.
That will be positive for the markets going forward if they stick to it.
Geopolitically nothing new to talk about. A few things festering in the background but things have settled down substantially from where they were a few months ago. Just notice the change in Def Com level!
So here we are a week away from what usually is a blastoff period going into the 1st with things settling down. A pullback here would be a very good opportunity to get long to ride out the last two weeks of the year.
You still cannot abandon your position sizing. That is something that you can never do. Discipline is important no matter what the historical results show. I know as I have to take a bath a number of times thinking historical results is the genie in the bottle. It is not but it is a tailwind.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. It’s my private twitter feed for the stock market and its free. Sports Handicapping is the subscription-based part of this site. But considering the cost of joining it’s almost free:)
Good Luck Today
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