The Stock Market is slightly down this morning, with TLT and the Metals joining them. Everything else is slightly higher to neutral premarket.
This to me is a slightly bullish configuration.
A big news week this week. We have the N Korean summit first up this week. Then we have the Fed meeting where it is expected interest rates will be raised again. And finally, yes finally, the OIG report out by this Friday.
One positive sign for the markets is that the blowup at the G7 has not sent the markets nose diving. That means to me that this market is going higher.
How the markets react to good and bad news is usually a tipoff of the short-term direction you will be seeing. ( This is a good indicator to keep in your bag of tricks for swing trading)
As far as the news I have no idea what to expect. N Korea could go either way, although one would think that the White House already had the details worked out long in advance of this meeting.
On the OIG report, many think the delays are a result of the DOJ watering down the report. If so you will hear an outcry from the Republicans. And if not watered down the outcry will be even louder from the Democrats and the mainstream media.
As a hint at what might happen after the OIG report hits one only need to look at the recent indictment of the Senate Intelligence Committee staffer. Sessions is serious it seems and that does not bode well for the lawbreakers, especially the leakers.
In addition, it is reported the staffer was arrested long ago and a plea deal was obtained. More indictments will be coming soon as a result of this arrest. I assume some members of the committee are at risk here.
As far as the interest rate increase, this is already built into the market. If perchance there is no rate hike, I expect the markets will skyrocket for a day or two.
Either way, I expect new highs in the markets before we get any kind of reversal.
On a technical basis, the markets are overbought. Typically this is not a good time to start jumping into swing trades. At the very least I like a neutral to oversold market before putting on trades. But we will see this time.
I still have on a basket of ETFs, stocks, and bonds. Most everything is has a decent yield.
It’s a very conservative configuration, perhaps too conservative. But at my age (71) it’s not the time to get too speculative:)
If I take any trades I will post them on twitter. You can follow me there @rickjswings.
Good Luck trading today
RickJ’s Handicapping PIcks