The Stock Market has rolled along nicely without incident. The Fed is being largely ignored finally. But yesterday a new glitch has arisen and her name is Hillary. In her wisdom she decided to start bashing the biotech and the “outrageous prices” they get. The market with sentiment overbought anyway did not take that very positive and immediately started a cascade to the downside.
It would be interesting to find out if the Clinton Foundation or any of its many contributors had puts in biotech before Clinton’s speech? Just thinking out loud:) (This comment is meant as a joke!)
And now today we get Yellen’s speech which the market will be listening to attentively. My guess is she is dovish which will get the market back on track to the upside. But its only an educated guess with the emphasis on guess!
Should be interesting anyway. I always like to see how my predictions play out.
As far as trading this market now that we have had day 1 of a pullback. I think this is going to create a good trading opportunity going into November. I still feel the Fed is not going to raise rates prior to November so liquidity is going to be strong. Sentiment has most likely taken a nose dive a bit after yesterdays scare. I am sure it too many by surprise.
As far as follow through this morning SPY is off .15% and is near the lows of the overnight session. Ideally we get one more day of a nice drop but I think we will be lucky to get it.
I still have my GLD and after yesterday I am about break even. I plan on holding my position until my system tells me to exit. It’s a multi market system that has been very solid over the years. One of the few that I follow blindly. Everytime I am tempted to tinker a bit with it I look over the real-time past performance and how much I have made with it. That persuades me to keep my hands off of it:)
Saying that it has taken some big losses but the graph and profit factor is one of the best I have encountered. Almost as good as an SPY system I blindly follow. Which by the way has not triggered yet in the SPY.
I will be looking today to add more swing break out longs if they trigger. In addition if we get a down day today depending on some variables I might start a position in SPY.
And of course a few words about my Hillary comments. I only make these as to the effect they have had on the market. My comments in no way reflect my feelings or position on any political positions. I am neither Democrat of Republican. As an Independent I am issue driven. But I stay away from Politics on this site and never intend to express an opinion on any political subject whatsoever.
Until the polarization starts subsiding in the U.S. in politics I do not intend on getting involved discussing it.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. Its 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 its almost free:)
Good Luck Today
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