Markets are gapping higher this morning with QQQ leading the way at .25% thirty min before the open.
Of note, Metals, and biotech strong, financials up, Oil and TLT down.
The question that comes to mind is what is going to break this market if anything:)
A disaster in Texas, riots at Berkley has not affected this market so far.
But beware a catastrophe is looming and it is coming very soon. The potential for disaster striking comes on Sept 5th. Congress gets back in session!
If anything will tank these markets Congress certainly can do it. The Congress is acting you would think the President is a Democrat. They have taken an adversarial approach to Trump from the start both in public and behind the scenes.
Trump, for the most part, was sticking to his agenda but Congress kept sniping away. So finally the President decided being nice is not going to get it. So it outright warfare now. It’s going to get very ugly.
Who will come on top one only needs to view the publics disdain for Congress? Yes, certain polls have Trump with very low approval ratings. But, not even close to some of the members of Congress. And if you look at the base his numbers remain very high.
So my guess is Trump wins big in the 2018 primaries with establishment Republicans losing big time. How bad Strange gets beat will be a harbinger of what is coming for establishment Republicans.
As I predicted Trump is softening his support for Strange and most likely before the election will withdraw it completely. Strange per Trump’s view failed miserably in his public interview.
What does this mean for the markets? Volatility while open warfare exists. There is a light at the end of the tunnel for the markets but it does not come until 2018.
I will have more on this later but Volatility will be very high the next year. Congress is focused on undermining Trump and finally, Trump is done being nice to Ryan and McConnell. It will be interesting to see how this all plays out.
But do not get overexposed while the idiots in DC are doing everything but the peoples business.
As far as trading this morning I will be looking at short term trades depending on breadth. Mean reversion is off the table as the markets now are back to neutral.
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