We are 30 min before the payroll numbers and I am long in the markets at a level I have not been for awhile. Nothing big but typically I have been very conservative with short term trades and only a few of those.
But this morning I find myself with 9 positions all on the long side of the stock market.
It should be an interesting morning. The late push to the upside in the last 30 min yesterday in the stock market gives me a bit of a cushion this morning but it also got the market closer to overbought short term. The sentiment, however, favors the downside and this, in my opinion, is a good thing. Of course, we are rapidly approaching the UK referendum vote and then the June Fed meeting. So a lot going on the next 3 weeks. Any one of which could make the market nervous. However, the market has ignored the uncertainty perhaps because there is none. The referendum vote is highly favored to keep the UK in the EU and the June meeting rate hike odds are very low.
Also, I did not mention this before but the Nasdaq SPY relative strength indicator triggered last week which bodes well for the Stock Market. This is one of the few indicators that tends to show a good bias to the upside. Traditionally the money that is made in the markets is when the Nasdaq leads the SPY on a weekly basis. That is where we are now. It’s not perfect however and the last few triggers did not show a gain. For me, its one of my go to green light indicators for trading the stock market.
This morning is going to be spent managing my 9 positions. As far as new trades I am going to back off a bit this morning as another green day will put the market very short term overbought. However If the setup is perfect I am going to consider taking it anyway. Good to be flexible:)
Finally, I am slowly getting back to caught up in fixing the WordPress and computer problems. Changing my memory from 16 to 32 has helped a lot but that was a minor repair compared to everything else that had gone wrong. Then to top it off my hosting company has less than stellar support. Combine that with finding an online expert on WordPress is like finding a needle in a haystack. So I have had to figure everything out on my own. I do not mind that but its time consuming.
Ok 20 min away and I have to get back to the markets.
If you wish to follow my trades you can go to @rickjswings. It’s my private twitter feed and there is no cost to follow for now. And most likely will not be for quite awhile.
Good Luck Today
RickJ’s Handicapping Picks