Markets are mixed this morning 30 min before the open.
The only things to note are Metals strongly up and Oil strongly down.
I view this as neutral heading into the open.
Yesterday was a difficult day to trade with a lot of chop. I tried 2-day trades and ended up with a small gain.
Today it’s more of the same. Day trades if the opportunity arises. We are in neutral territory short term.
On the political front, we saw something yesterday that we have not seen in awhile. A Republican President going across the aisle and working a deal that is contrary to what Republican leadership wanted.
You could say that Republican leadership is going to attack Trump and stall his agenda. But they are already doing that. In addition, 2 Congressional investigations regarding Trump and Russia that have gone nowhere for a year now and also forcing Trump’s son to testify in Congress. Oh, yes and backing the appointment of the Special Counsel.
Regardless of the merits of the above, I doubt that Congress could do much more to attack this President.
So, Trumps reaching across the aisle should have been expected yet Congressional leaders are acting outraged. Establishment Republicans are not going to know what hit them in 2018 in my opinion. Most will be primaried out who are up for reelection and if things do not change 2020 will be the final gasp for Establishment Republicans.
53 million people voted for an anti establishment candidate. If this did not bring the message home, nothing will.
For the Markets, this means more volatility. My thought not much is going to get down. Already Ryan is undercutting tax cuts and now the wall. The open warfare continues and its just going to get worse.
If I were a betting man I would be betting on Trump over Congress. But, I have lost bets before:)
Thanks to the agreement the Debt ceiling is off the table as a problem for the next 3 months so you can check that off your things that could go wrong list. Trump has avoided the cycle of posturing until the day of the deadline. That is a good thing for the markets. So let’s see how the rest comes in line.
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