Markets are about unchanged 30 min before the open with the only noticeable indicator being GS off .64%. Typically weakness in the financials does not bode well for the markets as a whole.
One thing about premarket is it’s very thinly traded and oftentimes except for the major indexes, the numbers can adjust rather sharply after the open. So keep that in mind when drawing any conclusions.
I am looking to get long on any pullback in the markets. Yesterday the markets took a rest and today might do the same. Generally, after 1 trend day, the markets consolidate and after 2 in a row for trend days the odds of a consolidation are even higher. So that is where it looks like we are now.
My GLD trade has pulled back a bit and almost exited yesterday. But the rally off the lows took the exit off the table. We are looking at a very nice gain on GLD from the 108.25 entry.
GEO we have been holding now for a bit longer than most swing trades. But the steady move to the upside has kept us in the stock. It is settling back a bit now but we are still aways from our stop price.
Today should be very similar to yesterday for trading. The market is still overbought but seasonality has the wind at our backs. I will be cautious on intermediate swing trades but for a day trade with the right setup, I would consider.
Nothing has changed on the U.S. political home front or the Geopolitical front.
The Sanctuary city fight between the Federal government and Sanctuary cities is starting to develop into a full blown battle. Miami has announced that they are no longer a Sanctuary City and I suspect more will be making that announcement soon.
The two big Cities to watch is New Yok and Chicago. Both mayors have doubled down on confronting the federal government which could result in a very ugly fight that could potentially spill over into the markets.
The other item to watch is the Wall issue on the U.S. southern border along with Mexico’s president canceling a meeting with the U.S. president because of the border issue.
The talk now is the potential for a 10 to 20% tariff on incoming goods from Mexico. The risk being that this action might spill over into a full-blown trade war. The market will not like that one bit.
One thing you can watch or not is the Mainstream media along with the Democrats treatment of the current President. The reason I do not think it bears watching is that nothing is going to change for the next 4 years in that regard. The policy of both (right or wrong) has been set and should stay consistently antagonistic throughout Trump’s first term.