Anyone that is short over the weekend is in for a rude awakening this morning. All indexes are up over 1% with the Nasdaq leading the way at +1.81%
It seems the agreement between Trump and Xi has triggered a July 1st buying frenzy. No new tariffs, business being able to sell to Huawei, and China buying more agricultural products.
TLT is -.44% , @vix.x is -8.09% and Oil is +2.70% (thanks to an OPEC cut)
This has the makings of a very strong trend day up. In addition, the first of July tends historically to be a strong day.
Now, before you start jumping in thinking this is going to be a new run to the upside , there are a few things to consider:
- No agreement has been made between China and the US.
- The NAFTA changes have not been implemented due to the house dragging its feet.
- Rubio is already criticizing the Huawei arrangement with the threat of a veto-proof majority.
- And we still have the House attempting to further the coup attempt, with calling Mueller and his staff. This will create some fireworks.
- A trend of increasing violence is occurring, along with political censorship to levels not seen.
So, if you are long, enjoy the day. But be aware that there are still plenty of mines in the road. Until we get the Nasdaq/SPY relative strength signal or get to September, it’s better to be cautious.
I have been asked to do some political commentary on this site. I have avoided it, except for how it might relate to the markets. I am not inclined to go any further than that. However, @rickjsportplays on twitter does have any political commentary that I might have, in addition, I have a twitter list that is public under that twitter name you can follow called “RealNews”.
If you lean toward the liberal side you might want to stay away from those:) But if your independent or toward the conservative side you most likely would enjoy them.
As a part of my sports handicapping subscription, I sent out almost all of my trades via Viber. This has been a nice value-added feature of the handicapping service. At $49.00 a month for all sports plays I handicap, you get most of my stock trades.
If you want to follow some of 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
RickJ’s Handicapping Picks