The stock market is gapping up a bit this morning with QQQ and IWM leading the way at +.30%.
Of note, metals down and most everything else moving around the 0 line.
Another down day today and we will be setting up for a nice trade into the beginning of the best time of the year.
Hard to say that though as they sell in may crowd is a sorry bunch right now. It would be a double whammy if they doubled up now beginning of nov and the market nosedived!
I cannot help myself as I almost always think contrarian.
Things are heating up now in special counsel land. Except I doubt we are at peak chaos. From what I read there are a number of unsealed indictments. These will most likely tell the direction that the special counsel is heading.
There is rampant speculation from every corner of the political spectrum what the direction will be. Combine that with the spin and there is no way you can figure it out.
My recommendation is, if you have an emotional investment in this, to take it day by day. Ignore the spin, as a contrarian I think that typically the opposite of the spin is the most likely path to the truth.
And the more intense the spin the more likely that is true.
We are in very interesting times right now. I was around in the 60s when the Viet Nam war protests were on full display to the world. I was on campus when protesting was an everyday occurrence. “Make love not war” was the theme of the day.
I think back on the Woodstock generation with many memories.
But today is a bit different then back then. Its more intense and the battle lines are more succinct with 0 give and take from either side. Combine that with Congress in do-nothing mode to the extreme and you have a very volatile environment.
I am not going today that the markets will eventually succumb to this as I have been saying the last 4 months:) But I will say protect your hard-earned portfolio. Be aware of the risks.
If the special counsel takes a turn to take out the President this market will nosedive faster then you can blink an eye. It’s that simple. It will be a crash to behold and the ones making the money will be the insiders that knew this was coming.
Cynic? No, a realist.
I am long JO and UUP for bottom reversal trades. And I got out of HAL yesterday as my signal to exit was hit. I am still long XNCR with a pretty large loss. That is the way mean reversion goes though. It’s not for everyone. Money management is crucial here.
I attempted a swing yesterday that looked very good at first. Then the market started tanking and I exited with a very small gain. But of course the market turned around in the stock later, but that is really irrelevant as it happens all the time.
It’s like saying, I should not have folded because I would have won that hand:)
So let’s look at the breadth this morning and see if we can come up with another short-term day trade today.
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
RickJ
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