An hour before the open with SPY off .12% and QQQ off .10%.
Of note GS -.31%, IBB -.61% TLT +.68%
In the energy sectors USO -1.07%
Metals GLD +.60%
I see nothing unusual in the above number as all are pretty consistent with a down open with perhaps more downside today.
My view has not changed that if we get more downside today it is a buying opportunity.
Also if your gap trading you might want to consider a gap trade on SPY if it gaps down. The conditions seem ripe this morning for this trade. Beware, my last gap trade did not work out so well:)
I am still long GLD from 108.25. This morning after a nice move on Tuesday GLD is gaping up .47%. This trade is a good example of a trade working exactly right from the start.
Most do not work out this way. Many trades take heat at some point or another in the trade.We have been close to being stopped out on this trade 2 times but as we sit now one stop price I use on the trade is quite a bit away from where we are at now…. 115.24. Although there is another exit I watch and that is when the system gives an immediate sell signal. I use whichever comes first.
Today I plan on taking swing trades if they develop. Although again today my list of symbols that I screen is very small.
On the Political and Geo-Political fronts, the only new item that I have seen is the Greece is slowly getting back into the news as another potential for default.
I suspect you will hear more and more of this in the next few weeks. If you recall last time this issue came up it played havoc with the markets.
Let me give you another caveat before I get back to work this morning. “Fake News” has morphed from the political arena into the financial arena. I saw some movement into that slightly several weeks ago. But it looks like it is speedily becoming something to consider if your following financial news.
This makes it very difficult to evaluate financial news stories. The climate has become so charged up that you can consider this as a caveat for almost all financial news.
So what is one to do? My thought is it makes it even more imperative these days to have a logical non-ideological mindset when you read and attempt to interpret financial news today. If you have no ability to either jettison any ideological leanings you have or do not have the education to figure financial issues out on your own, then you have to find several financial analysts that are not political animals and have a proven track record of integrity.
They are out there but it is like finding a needle in a haystack. It’s similar to trying to find a good attorney when you need one. I am an attorney and the odds of finding a good one are in the neighborhood of 500 to 1. Maybe higher:) I do not want to get sidetracked on this issue as I could go on and on about the state of the legal profession.
In defense, however, of the legal profession, the above statement is true when trying to find most professional types!
Those are my thoughts on a Wednesday morning. A bit disjunctive but I woke up late this morning ….4:30 A.M. I am finding 3:00 to 3:30 is a perfect time for my wake up call.
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