The stock market is up slightly an hour before the open. Of note, the U.S. dollar is up along with oil, metals are down and everything else is mixed this morning.
A pretty neutral premarket so far. We are still a bit overbought short term. I would say expect a pullback but I am afraid it would be met with laughter by now!
As every day goes by the hopes of a tax cut bill getting passed is getting more optimistic. My thought is unless you get a few Democrats on board the tax bill goes down in the Senate.
That is what you need to keep track of Domestically.
On the world stage, things are heating up a bit. The U.S. has now put its B52 nuclear bombers on 24-hour alert. You would think the markets would be a bit concerned but so far they are ignoring it.
And you would think our politicians and news media would be covering this as the implications are enormous. In particular, what information does the White House and Pentagon have to take a step like this that has not been done since 1991?
But they are too wrapped up in the President’s phone call to a gold star family member. You cannot make this stuff up. I for one will be glad when this cycle of insanity comes to an end.
As Hillary so appropriately said, “Not accepting the results of an election is a threat to our Democracy”. She could not have been more right on that one.
That is all I am going to say on the subject as my only intention is to make you aware that all is not well in the “Worlds Model of Democracy”. And this in my judgment will affect the stock market, sooner or later.
And it looks like its going to be later:)
I am long UUP which is a U.S. dollar ETF. It’s still not conclusive we have had a reversal, but the risk now is very small on the trade. If it breaks out there is the potential for a very nice gain.
Some other reversal trades I am watching are:
All of these have in common is that they are oversold on the weekly and monthly charts. Most have a basing pattern on the daily, and some have an RSI divergence.
Now all I need is a Breakout with volume.
These types of trades are typically low risk with a very nice profit if your right.
As far as breakout trades, even in this bullish environment, they have been tough. Even though the markets are going up, breadth above 1400 on $ADD has been very rare.
I will be watching this morning, but so far its hard to get aggressive when breadth is not giving you a tailwind.
I will post any early trades and comments on @rickjswings
Typically I am around the first 30 min for comments.
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