Its looking like a rough open for the markets this morning with all of the indexes gaping down from .5 to 1.11% an hour before the open.
Of note, financials getting hammered off about 1.3%, Oil off, biotech off over .5%, metals about .5%and TLT.
Between the increasing insanity in the U.S. political process and the Fed you really do not have to be a genius to figure out that the Markets are high risk right now.
Under any scenario as to how things go now that leading politicians have been the victim of politically inspired violence the market will be vulnerable.
Even under the best scenario, I see happening the risk will be high. Remember, there are two committees investigating the white house along with a special counsel. There will continue to be leaks and also heated rhetoric.
Already a never Trumper is blaming Trump for the Va shooting. This has the potential to snowball completely out of control.
I suspect the markets may be beginning to catch on to this. When the drop hits I think it will have the potential to set records. I have never seen the U.S. on the precipice of where it is now. And to make it worse I do not see it turning around anytime soon.
I do not see any leaders from either party stepping forward to stop the madness. To the contrary, what I have been seeing is more of the same.
So, do not risk your hard earned money by taking a substantial position in the markets until some type of normalcy returns to the U.S.
In addition, if you have a large nest egg, I would consider moving it to a solid financial institution out of the country. As far as which to move it to, I have done 0 research on the subject but have put that on my list of things to do in the next 7 days.
Which brings me back to the Fed. I have to ask, is Yellen blind to what is going on in the U.S. and around the world. Tightening in this environment to me seems ridiculous if not extremely negligent.
The argument is they want to be ahead of the curve! Just more madness.
My view of things right now is a dark one, to say the least. And perhaps my view is wrong. That is always something I consider when analyzing things whether it sports or political analysis.
So we will see about this one:)
I exited my last swing trade yesterday and am flat in the markets. Today I will be watching the breath and deciding whether it’s time to consider a mean reversion trade before the close.
Other than that it will be watching the tape, handicapping and going through my very long to do list.
Enough of my morning thoughts
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