As I am writing this 45 min before the open the stock market is off about .25%. Combine that with the late day sell off yesterday and perhaps this is the beginning of a small pullback.
I made a timely exit of all my swing longs yesterday when I saw es was not going to break through or even test 2191. Right now the only position I have is my GLD position which is up .60% pre-market.
My thoughts are that we get a 1 to 3-day pullback and then another move to new highs starting Thursday or Friday. That is how I plan on trading this market now. I also think there is a modest chance of a bigger pullback than people expect due to the complacency and however bought we got short term. But it’s hard to rely on that too much as until the elections in November the Fed is going to do nothing to upset the markets.
Let me repeat this for you. Until the elections in November, the Fed is going to do nothing to upset the markets! Every governmental agency, the press, the white house, and even some republicans are pulling out all stops to assure a Clinton win in November.
I am not making any opinions on this at all but only mentioning it because this is going to create a tailwind for the markets for the next 3 months. So I plan on taking advantage of this by doing what I have done. Finding Breakout candidates, play the breakout, and evaluate the exit based upon the variables I use.
Today I will be watching $ADD to see if it’s conducive for a break out trading. If so I will be taking a few trades but nothing like I have done the last several weeks. If we get the pullback I am expecting then I will step it up a bit.
I have received a few emails about when I am going to put out #6 of the free trading sites. Right now I am stuck on coming up with #6. There are several sites I can use however one criteria I use is the % of up selling done on the sites. Once it reaches a certain level I feel that subtracts substantially from the value of the site. But I assure you the second I make a decision I will post #6.
If you wish to follow my trades and comments you can go to $rickjswings. It’s my private twitter feed and is free. I do not post all of my trades but I do post many of them as I have time.
Good Luck Today
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