Approval of Cabinet appointments begins today. It will tell the story as what to expect the next two weeks. If the Republican’s do not use the “Reid” rule in the Senate expect mayhem. If they use it then it all comes down to the “Neo-Cons” McCain and Graham vs the moderate Democrats that are up for reelection in states that Trump won handily.
I expect no favors given to Trump by McCain and Graham and whoever else they can round up to side with them. The McCarthyism hysteria they are fostering to embarrass Trump is inexcusable.
It is even more inexcusable considering they have stayed silent over the last 8 years of a Democratic President. But now they for some reason have found their voice.
I bring this up as it has the potential to unsettle the markets if a gridlock happens to come up in the Senate on Tillerson or for that matter any of Trump’s nominees. Day 1 should set the tone so watch it closely.
I expect both Tillerson and Sessions to get the “Bork” treatment. But in the end, I cannot imagine either be defeated for their nomination. But with McCain and Graham one never knows. They are quite a duo.
I am going to be watching to see if there is a hitch.Although you most likely will be able to see that if the market takes a dive today. As it will most likely coincide with the unexpected happening in the confirmation process.
One other geopolitical event that is taking place is the U.S. moving a substantial number of troops and tanks to the Russian border. They are coordinating this with the NATO forces in the area on the pretext of supporting the eastern European states from Russia.
This has the potential to blow at a seconds notice. You might also note that China is moving Military units around also.
I only ask if the world has finally gone that mad to consider a breakout in hostility between the U.S. and Russia with perhaps China getting into the fray.
The only thing that is keeping this from getting out of hand it the transition of power in the U.S. in 10 days. I doubt Russia and China would be so quiet if Obama had another term to go. But I also doubt that Obama would be moving troops in this manner if he was not leaving office in 10 days.
It is not logical for a President with 10 days left to begin a troop movement of this nature especially without consulting with the incoming President. Something seems very wrong here.
It’s something also to pay attention to. Watch Gold. If it starts skyrocketing you will know something very wrong has happened.
Pre-market of significance is DM off 1.5%, IBB up 3/4%, and Gs off almost 1%. With financials taking a hit premarket unless they recover I cannot imagine the markets taking off to the upside today. We will See.
My GLD trade is looking good and there is no exit planned until I get a trigger from the system I follow. It’s been about as solid as a system can be in GLD. It’s a multi-marker system that considers many facets.
In addition, I have several swing trades going all of which look pretty good right now. Any pullback I consider buying opportunities.
I am going to again make the disclaimer that I have no ax to grind against the Democrats or the Republicans. I am an independent down the middle. I only call things as I see them as to how they might affect the markets.
I voted for Obama his first term, I became very critical of Graham when he leads the charge against Clinton to have him impeached, and I felt and still feel the Iraq war was one of the blunders of history.
But at this point, my attention has now shifted to what is going on now and how it affects the markets. And the above two issues have the potential to really derail this bull market.
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