Markets are gapping up again this morning about 1/4% 30 min before the open.
Of note, Financials, Oil, are on the plus side while IBB, TLT is negative.
Overall, a positive bias going into the open.
Today will hinge on what the breadth looks like 15 min after the open. Typically after a big up day like yesterday, you get a consolidation or a pullback.
This market does not want to go down however so until we get the next news scare it appears it up and away for the markets for the short term.
The market is no longer short term oversold, but there is not much negative right now technically.
I did some short term option trades yesterday morning. I really do not have time to share those. But, when you’re looking a big trend day up the weekly options tend to provide some great opportunities.
Just remember, out of the money weekly options value goes down fast as you get closer to Friday. So best to day trade these rather than any position trade. You’re paying a premium for the leverage you get. And it’s a hefty one in most cases.
Not much in the news overnight. Everyone is getting jumpy right now in the Republican camp after Trump did a deal with the Dems. So for now, they are at least jawboning they are on with Trump’s agenda. Except of course for McCain and a few others.
With only being able to lose 2 Republican votes in the Senate the NeverTrumpers are free to hold the Senate hostage. And I assume they will do that. So not a bad idea for Trump to reach out to some of the moderate Dems in states he carried handily.
Whats amusing is to hear the Republicans whine about it. Nothing worse than to have to listen to whiners especially as they have brought it on to themselves. They have fought this presidency from day 1 with 2 Russia investigations which are still ongoing despite nothing revealed, forcing the president’s son to testify (I thought the family was off limits) and bad mouthing the president every chance they get.
And now they whine:) Amazing.
That’s why I am an independent. I have no love for either party right now. Although there is still good in both but its getting smaller and smaller.
How long will the markets ignore the DC dysfunction? Think tax cuts and special counsel. Those are the two biggest I see on the horizon.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Typically I talk about the overall day expected with the markets and also give some levels on the ES and NQ for failed breakout scalping.
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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