The Stock Market is gaping up this morning lead by the Nasdaq which is +1.02% an hour before the open.
Of note, Biotech, Oil, Metals, financials Strong. TLT is slightly positive.
To me, this looks like a positive bias with the caveat that TLT being on the plus side is negative.
The stock market has been moving sideways for a while now and I mentioned yesterday I expected a breakout to the upside soon.
Looks like we may get it today.
There are just too many positive developments to hold this stock market back.
Earnings are very strong with the reduction of the corporate income tax, Unemployment is at record lows in all categories, for the 1st time in a long time we have more jobs than people looking for jobs.
We also have health care poised to take a turn with new insurance policies coming out in September that should reduce the burden for the middle class from the onerous ACA.
On Trade, the EU is meeting with the U.S. soon and the expectations are there will be a trade deal.
That leaves China, which is still in the works.
On the geopolitical front, N. Korea is dismantling another Missle site, tensions with Russia are being reduced with Putin invited to the White House.
The big geopolitical risk now is Iran. Rhetoric is heating up, and it remains to be seen how that develops. I doubt Iran will go the same way N. Korea has gone. It should be interesting to follow to see if the White House strategy will be as successful as it was in N. Korea.
The political dysfunction in the U.S. shows no sign of abating. If anything it increases daily fueled by the Mainstream media. A 24/7 barrage against the White House is not taking its toll on the President’s popularity, however, it is creating increased tensions among and divisions in the population.
As I see it this is most likely not going to end well. You cannot stoke fear and hatred and not reap the whirlwind of civil unrest. We have seen indications of it but so far it has stayed in check. If it blows up, you will see violence the U.S. has not experienced before. (baring the civil war or the Revolutionary War)
So, keep the above in mind when investing medium term. There are quite a few news items that could cause a quick plunge in the markets. So keep abreast of the news from a reliable source.
The best of the bunch by far of the mainstream media publications is the Wall Street Journal. The news there is typically accurate. It’s balance in its opinion pieces. The writers are some of the best.
Once you start straying from the Wall Street Journal things get very dicey. My advice is to stick with the Journal and avoid the rest of the mainstream media.
If you do not have an accurate picture reality you will be making some very unprofitable decisions.
It looks like today might be a good day for a swing trade, although large gaps up can be tricky. If I take a trade, I will post it on my private twitter feed @rickjswings
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
RickJ’s Handicapping Picks
https://rickjshandicappingpicks.com/investing
Skype: Ricca
