The stock market put in the 3rd largest 1 day gain in history on Monday. The biggest since 2008. Amazing what a news driven market can do, both on the upside and the downside.
The lesson is, again and again, be aware of the news. Not the fake news but the real news. If you only listened to the mainstream media you would not have had a clue that the tariff threats were part of a negotiating tactic to get better deals for the U.S. All you would have heard is hysteria along with doom and gloom.
This is about as good a real-time lesson as you will see. When it all washes out the threat of tariffs will turn out to be a positive for the U.S. It will potentially begin to undo decades of disastrous trade policies of previous administrations. Why has it taken so long? We finally have an administration beholden to no special interests. Like Trump or not personally, He is beholden to no one. Compare that to the previous administrations, all of which were in bed with one special interest or another.
Or Congress for that matter who’s strings is pulled by various special interests both foreign and abroad. Some of the sweetheart deals members of Congress have obtained for their families from foreign governments (sometimes in the billions) shows how broken and corrupt our system is.
And if you think I am a partisan on this, both sides of the aisle are equally as involved in these transactions.
We are starting to see what it is like having an administration beholden to no special interests. It’s probably something that seems foreign to most of you, but, be open minded and watch to see the positive results unfold. At least until the administration’s enemies are successful in bringing it down (if they are). Then it will be back to the usual graft, business as usual in D.C.
I only talk about this because there is no better real-time example unfolding today. You will not get this picture from the mainstream media. If you listen to them solely you will be in an alternate reality. And you would have missed this great buying opportunity Friday.
I am still long SLS and QLD. Also still long CMCSA. If the rally continues and holds today most likely my end of the day exits will trigger on at least the first two.
I am also long a 100% position in AMTX. It’s for now a range trading vehicle that has been working out very well, so far:)
The stock market is going to gap up this morning with QQQ leading the way. Of note, Most everything green or neutral except metals which are in the red. A slightly positive premarket to me.
Typically you expect to see some pullback or consolidation after a big move like yesterday. The market was so oversold however It would not surprise me to see another moderately strong day today. We will see.
Let me close this morning that I have over the years, both as a trial attorney, businessman and professional gambler, to tune my mind toward the analytical side and stay away from the insanity of any ideology. On the political side of things I have lean toward the Democrat side of things, the Republican side of things and have voted for both. I voted for Obama his first term.
I view things strictly from an analytical perspective. It does not always come out correctly as its almost impossible to filter out the human bias from the thinking process. But at least I am aware of it and attempt to correct for it.
What amazes me is the number of humans that have no perspective on what is driving their opinions or emotions. They just go with the herd, which all things being equal is the wrong side of the equation. Similar to betting sports, when everyone is on one side of a wager, you want to be on the other side or passing on the game.
It’s equally true on the various issues of the day. All is not what it seems for various reasons. If you do not have a handle on this you will not only be a losing bettor but be on the wrong side of a number of important political issues.
Everything is very complex. There are many considerations on every issue. Beware of people our entities trying to drive a narrative that makes solutions simple. As they are exactly the opposite.
My 2 cents this morning:)
Let’s see if we can make some money today!
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
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