Markets are gapping down this morning but off their overnight lows.
Of note, Gold, Oil, and TLT are up big this morning. while Financials off big.
This paints an overall negative bias to the markets heading into the open.
A lot for the market to digest today.
Congress is back in session. I suspect fireworks today when Trump announces the end of DACA with a 6 month grace period for Congress to pass some legislation.
This is the last thing Congress wants to happen as the Republican base will most likely primary any Republican in Congress that supports DACA.
It will be interesting to see how this plays out. There will be a lot of threats, complaining, with the media going crazy on this issue.
I expect a lot of chaos as a result of this decision by the president. Much of it, of course, will be posturing and much of it will be by Congress knowing they are in the hot seat on this one.
Then, of course, there is N. Korea. Who knows where this is going. But the uncertainty of what the U.S. is going to do along with the certainty that N.Korea is not going to stop creates a very volatile situation.
The overnight markets took a quick dip when it was announced N. Korea had a hydrogen bomb.
I expect a lot more volatility. If you’re a swing trader that likes to pick off gains you need to be careful in this environment. As at anytime news could create a huge downdraft in the markets.
And last but not least we have the debt ceiling coming up:) We should know in a few days what type of potential crisis that will bring.
My goal, for now, is to day trade good setups along with mean reversion trading. Medium term swings are off the table right now.
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