The stock market has an interesting day yesterday. It was smooth sailing with the markets exhibiting a gap and go. Breath was great, everyone was ecstatic. What could go wrong:)
Well, Breath started plummeting around 10:30 PST. Then the markets followed with a 400+ pt reversal on very high volume.
Just a friendly reminder to those that think the markets are a no-risk venture.
If you think sentiment cannot change on a dime take a look at Reddit on the bitcoin markets.
A few weeks ago they were popping the champian corks telling each other how smart they were.
This can happen in the stock market also, and it has many times.
But today, it’s another gap up:) Business as usual.
Markets are gaping up over .5% this morning 90 min before the open.
Of note, Ibb, Financials, U.S. Dollar strong. Metals and TLT off a bit.
Looks like a strong bias to the upside to me.
But, we will see what comes out of Congress today, as they are intent on killing this bull market with there dysfunction.
There are so many important issues to take care of in the U.S. but rather than work together to solve them it’s all about winning in 2018 and 2020 regardless of what it costs the U.S. They have lost sight of what they are there for. And it will put the markets at risk if they don’t get there act together soon.
Both sides are to blame as I see it. Yet there is no leadership in Congress that will put an end to this dysfunction.
Now we are still in a seasonally strong period. But the event risk is very high right now. So take that into consideration when you position size your trades.
I went short the Nasdaq using SOXS about midday when I saw breath plunging. I will play that hedge by ear this morning.
Another big reversal today to the downside and I will be looking for some mean reversion trades. Otherwise, I will be monitoring my hedge.
Doubt I will put on any new trades 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’s Handicapping Picks