The stock market is gaping up this morning, almost the reverse of yesterday.
TLT down over 1% with financials up over 1%. Most everything else is in the green.
This is a bullish premarket environment.
I sent out a notice yesterday that I was going to start a mean reversion trade in SPY before the close. But then the late 150 pt rally took me out of my trigger area:(
This trading is not easy. But, it’s always best to stick to what has worked in the past and is currently working. Patience is the key to staying in this very difficult game.
Italy has not been solved by a long shot. And every other problem I outlined yesterday remains. My guess is we get another shot at a mean reversion dip sometime soon.
The news item to watch for this week is the OIG report. This should be out either this week yet or early next week.
I will be watching for the fallout from the report. If indictments are coming it will be most likely shortly after the OIG report.
This has the potential to cause havoc on the market, not only from the indictments but from the reaction to the indictments.
It will be 24/7 coverage, with most of the coverage misleading or false. So, if you do not have an accurate source for news you will be in the dark.
Very difficult to trade that way:)
Good Luck Trading today
RickJ’s Handicapping Picks