I was beginning to doubt my Tuesday morning analysis when the dow hit -150. But in the last 45 min all was well and the markets went roaring back to finish about unchanged for the day. I bought 3 long positions yesterday and got stopped out on a gold short within minutes of placing the trade on. That is the kind of stock market we are dealing with right now!
Today the stock market is down slightly but I anticipate perhaps some more consolidation then a strong move to the upside. At least that is how I am going to trade it this week. I will however respect my stops as this market is a tricky one right now.
On the horizon we still have the overhang of the UK exit from the EU and also the potential June rate hike by the Fed. The smart money is betting the UK stays in the EU and that the Fed does not raise rates. And so far the market is not reacting to either possibility.
If either of these events take place however the market is most likely heading south big time. At least for a few days.So its something to keep in mind. In addition the closer we get to the events the more volatility we will most likely see if that is possible:)
I will be looking today to take breakout trades that trigger along with swing trades that setup to the long side.
As an aside I have finally solved the “blue screen of death” computer problem. If your having computer problems I highly recommend heading to www.resplendence.com. They have a number of free programs that can help you immensely in figuring out computer problems.
Also I have been reminded to post some of the trading sites I would recommend for traders wishing to learn more about trading. I am doing that but I have a lot going on right now. But its on my list! Let me give you one site that is I would say in the top 5 of all stock sites.
The site is run by Brett Steenbarger, Ph.D. and its free. If you read his site and go back to the first post by the time you are finished you will get an understanding of the markets and what your thought process should be. I would rate his site #1 but I am not finished with my list. Do yourself a favor and start reading his posts!!!
If you wish to follow my trades go to @rickjswings and follow. Its free for now.
I am back to the markets
Good Luck Today
RickJ’s Handicapping Picks