The stock market is slightly up this morning 30 Mon before the open. Of note, The only Red I see so far is in the Metals and TLT.
That would be consistent with a positive bias going into the open.
Even though the market has been strong(an understatement), its been awhile since we have seen a sound breadth day to the upside. A lot of chop and traders are not finding it that easy to trade this market short term.
Ideally what you want is strong breadth at the open, and then either a pause or a steady move to over +1000 on $ADD, and then up over +1400. You get that and breakout trades tend to do very well.
On the international front, event risk stays high. N. Korea and Iran now are both on top of the worry list. It’s not helpful that Trump and Tillerson are seemly at odds. But take that as a caveat since I have never seen a time like this where the mainstream media misreports and distorts the facts like they do today. So, very hard to know what the truth is from reading the newspaper!
On the home front, it’s the same old thing. Chaos and dysfunction in DC. The new report that came out from two reporters from the Hill yesterday has the potential to be very significant.
I have not had time to read much about it, but if the Hill is reporting it, you have to give it a serious look. They do not tend to get too far astray in their political verbiage.
Sessions will testify today in front of Congress, and the rumor is that Grassley has some direct questions about how Sessions is treating the unmasking and the new report that just came out.
How much of this is for show only time will tell. But, Sessions, is going to be put on the sport on this one.
Which leads me to, the stock market. What this will do is up the chaos more than it is right now politically. In addition, if its true, I suspect we will see some action by all involved. The stakes are very high on this one.
But the stock market has ignored all this for now. They certainly have not discounted it:) Should be interesting to see how this plays out and also what effect this will have going forward.
The markets right now are short-term neutral. I have a bigger list than usual this morning for short-term trades. So perhaps I will catch on this morning.
I had one yesterday where I made about 4% in an hour. Sold too early since I left about 8% on the table:)
I am long UUP and SSO. UUP had a small pullback and is acting well for the trade. SSO has a profit but not sure how much longer I am sticking around. I traded it solely for the options expiration week positive bias. So I will be out today or tomorrow.
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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