Are you ready for a -2% open in the stock market this morning? Here are some tips

And down we go!!! The Stock Market is tanking this morning, off only slightly off the overnight lows.
If your an active trader, its times like this to remember the advice I learned as an instrument-rated pilot.
If you find yourself in a full spin piloting a small plane, you are faced with the most difficult situations a pilot faces. You need to give it everything you have to correct it considering the consequences if you don’t:)
The moral is when the stock market is plunging, get your wits about you and do not panic. If you feel panic then you are trading at a level that is too high.
Its similar to sports betting. If a 20 unit downswing is going to cause you angst then your wager size is too high.
The key to all of this is to bet size or position size where all the variance becomes an intellectual curiosity rather than trying to find a bridge to jump off of!
So, here we are this morning with the indexes plunging, all down around 1.5% 30 min before the open.
TLT is up 1% which indicates to me that at least for the first half of the day we head lower. Financials are getting whacked as is oil, both off almost 2%.
Today might not be pretty to say the lease.
Respect your stops at least after things settle. Usually, I wait until the first 30 min of carnage has passed before I make decisions. Let things settle down a bit.
As far as swing trading, in a downtrend day best to not buck the market. However, if it really becomes a rout, I might look to start my mean reversion trades again prior to the close. Let’s see how the day develops.
As to news, none of it is particularly good. On the international front, the U.S. has pulled out of a nuclear arms agreement with Russia, Turkey is playing the Saudi Consolute incident to the extreme, with everyone buying into it, almost without question.
At home, do not expect any help from the FED. It would not surprise me to see the FED announce they are going to get more aggressive with rate hikes sometime today. Would be par for the course.
The tariff battles are becoming just that. Battles. At least with China.
And the Caravan coming heading to the U.S. Southern border looks like it has the potential to become an international incident (as planned)
And then we have the midterms:)
No wonder the stock market is plunging.
I am going to cut this short this morning as I need to go take some valium before the market opens:)

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’s Handicapping Picks

Skype: Ricca

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