After a big day in the Stock Market on Tuesday will this gap up hold today???

After a big day in the Stock Market on Tuesday will this gap up hold today???

30 min before the open and we have the indexes gapping up about .5% after a strong day on Tuesday.

Financials look strong this morning and TLT confirming the move as it is off .71%.

After the close on Monday, I put on a 1/4 position mean reversion trade in SPY via SSO and am staring at over a 2% gain in two days. These mean reversion trades typically you have to take a bit of punishment before they turn but this one worked perfectly.

Also, I have my swing trade working on GEO where my entry was 35.62 and it is looking at almost a 20% gain closing at 41.40 on Tuesday.

Then I have my system trade in GLD. I bought it at 108.25 and is now trading at 114.65.

Life is good:)  Good to enjoy these runs when they come as the downswing is never that far away.

On the Geopolitical front, China is making quite a bit of noise. However, right now things have quieted down.

At home, the divisiveness continues. Trump, however, seems to be able to ignore it all and so far stick to the business of fulfilling many of his campaign promises the first week of his presidency.

I am waiting any time now for the Republicans to start undermining Trump in earnest. So far we have only had rumblings by McCain, Graham, and Rubio. But considering that the special interest groups financing many of our politicians are taking a beating with some of Trump’s policies, I expect hostilities to begin very soon.

The thing to watch is Trump’s popularity rating. It keeps rising now across the country. But in the event, something happens to tank his ratings the wolves will be immediately at the door. That will be the time to consider lightening up in the markets.

Almost everything Trump is doing now is good for the U.S. economy short term. So the stock market should have a nice tailwind over the next few months.

Finally, I will most likely exit my mean reversion trade in SPY. Over 2% in two days is putting the markets a bit overbought. But we will see.

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

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