Except for the Nasdaq the Stock Market is hovering around the 0 line. The Nasdaq is off .15% an hour before the open.
Of note, Oils is taking a hit this morning while everything else is breakeven.
A slightly negative bias for the stock market an hour before the open.
The Stock Market remains strong with corporate earnings at record levels. China is showing no signs of back off in the trade fight with the U.S. announcing more tariffs to start on August 23rd.
It’s now about time for someone to figure out a win-win compromise with China. Especially with the midterms coming up. I doubt the Republicans will fare very well if this escalates much farther.
The President is a non-politician however, is doing what in his mind he feels is the correct approach. In my judgment, this will erode his support, especially among the farm belt.
In what already shows to be a tight congressional battle in November, the Republicans do not need the headwind of the effect of tariffs.
Perhaps the President has a bird he is going to pull out of a hat on this one. But so far, he is keeping it under the wraps.
Myself, I am not sure how this is going to play out. The Republicans won a very tight Congressional race in Ohio last night. Some say higher than it should have been as Trump took that area by 11 pts in 2016. But, they fail to mention that Obama took it by 11 points previously.
What this all means is uncertainty heading into November. There is no need repeating all the things that might derail this stock market but there are plenty.
Right now Tariffs are at the top of the list.
Now, I say this and the stock market just keeps going up:) Interesting, but that is the way the stock market works. Very counterintuitive.
An interesting day if you had TSLA yesterday. They halted trading as a result of some tweets by Musk that he was going private at 420 a share. An hour or so later the stock started trading and had a nice bump.
As it turns out it was even more interesting for me as I had some calls in TSLA that I had bought for 6.00 a share. Once the trading started I sold them for 16.00 a share. These trades do not come around very often:)
Short term the stock market is overbought. Perhaps we get some consolidation for the next few days before another push to the upside. Remember though this is not going to last forever.
Sooner or later this market will reverse. As long as this White House is in control I think the market is safe. But after that, all bets are off.
The President has no problem spending money, reducing taxes further, spending on infrastructure including the wall.
In addition, He continues to reduce regulations. I doubt we will see a more pro stock market president for a long time.
If I have time this morning I will post some trades. But I have some family matters to take care of which is going to prevent me from being in front of the computer most of the morning. I have to leave for a while after 8:00.
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
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