A strong day in the stock market on Monday. And today we may get some follow through.
The stock market is gaping up again with QQQ leading the way. TLT and the U.S. Dollar is the only red I am seeing this morning.
This to me is a bullish premarket. With the market in a neutral area right now it would not surprise me to get another big rally today.
Of course, we always are susceptible to a big news item in our dysfunctional political environment hitting the airways. But this is the environment we are trading in. Don’t fight it. And let’s see if we can profit from it:)
So far every bit hit the market has taken based upon both exaggerated news and in many instances, fake news has shown the market to rebound almost immediately.
This has been very reliable so far. It has been as reliable as the debt ceiling trade!
So, why fight it. Wait for the news to hit. Evaluate whether its the steady stream of fake news, and then start buying. I would scale in at 1/4 increments.
The trick is to determine what is fake and what is not. But if you have been following the political drama from reliable sources it’s really pretty simple.
It requires you to make certain assumptions. 1. That the news media is in the tank to remove this president 2. That leaks will come out typically toward the end of the week or after a big win by the Whtie House 3. The news will border on the incredulous:)
Now, number 3 is interesting. As if your only watching the mainstream media nothing will seem incredulous to your except why is the President not in prison yet for treason.
If that is your mindset please start reading the Wall Street Journal. Also start following Glenn Greenwald, Johnathon Turley, and Alan Dershowitz.
If you only follow these 4 you will have a pretty accurate picture of what reality is. If your up on these sources you will see that I have left out any conservative sites or right leaning people.
Greenwald is on the left end of the spectrum, Dershowitz and Turley are both moderate Democrats both who voted for Hillary, and the Wall Street Journal is probably the only mainstream news source that has retained its integrity during this entire process.
Beware, if your only watching CNN and MSNBC, you’re going to be in shock. And it will take some time to adjust to the new reality if you can. But if you’re going to make money in the markets based upon the political environment you really have to have some semblance of a picture of what reality is.
Now it is fine to be a “progressive liberal” or a Right-wing conservative. I have friends in both camps. And it’s fine to be an ideologue.
To each his own, live and let live is my motto. But when it comes to trading a grasp on the real situation on the ground is essential.
Enough said on this for now. So where are the opportunities?
1. The next big fake news item
I suspect with the OIG report coming out anytime now that we will get hit with a big news item soon.
Add the recent aggressive stance of the White House where all documents are to be turned over to the House Intelligence committee unredacted makes fake news an almost certainty at any time.
2. N. Korea
If the White House has success with the N. Korea talks I expect a nice rally. Markets will open up in N. Korea and it will be positive for not only the U.S. but the entire world
Several things to watch here. Regime change and Sanction
This will be an ebb and flow.
Watch the turmoil here.
Watch the turmoil here
So a lot going on. But that is the way we want it:) The more complex the political dysfunction is and the world is the more opportunity.
Good Luck Trading today
RickJ’s Handicapping Picks