When I mentioned strong pre-market bias yesterday morning I did not anticipate a blowout to the upside:)
The news was arguably bad for the stock market. The tariff wars are escalating with China. Syria is becoming a powder keg that could explode any day now. The Fed has indicated that rates are heading much higher.
Now, I ask, under what world would this news propel the stock market higher?
An important thing to keep in mind is when the stock market reacts positively to the negative news, the stock market is heading higher.
It’s the world of tax cuts, full employment, and massive deregulation cuts. I cannot imagine how far the stock market has to go on the upside if Tariff agreements get worked out.
It’s coming, just a question of when. My suggestion to the White House is to get it done by mid-October. End of October at the very latest.
My suggestion to Congressional Republicans is to fund building the wall. If they want to stay in the majority that is the one means to almost guarantee it. They know that. So one has to ask, what is their reluctance?
My thought is that its the influence of the globalists, chamber of commerce and “Trump Derangement Syndrome”
Take your pick, but I think all three have a hand in this.
When you start making decisions that are obviously against your interests its time to take a serious look at the decision makers.
That applies equally to both parties.
This morning an hour before the open, the indexes are off slightly. TLT is unchanged, financials are mixed, while most everything else I look at is in the green.
To me, this is a neutral pre-market bias. A gap fill most likely is a high % trade this morning.
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
