As I said the stock market is a news driven market. Out of the blue on Wednesday afternoon the White House announced a trade deal with the E.U.
This sent the stock market gaining over 100 points in less than 5 min!
Then overnight FB disappointed and the stock is off a whopping 20% premarket.
It looks to me that the same thing that hit NFLX last week has now hit FB. SJW fever is taking its toll on some of the big names now.
If you are the CEO of some of these companies and have the company become a SJW at the expense of the shareholders there should be legal liability. It is no mystery anymore that about 1/2 the population is going to exit your product. Its been happening with uncanny regularity now.
We are about 90 min before the open now with the stock market mixed. The Nasdaq is off 1.34% while the other indexes are hovering around the unchanged mark.
Of note, TLT and the U.S. dollar unchanged. Metals and oil off, financials on the plus side a bit.
To me, that is a negative bias for the stock market premarket.
There is a trade today that bears watching. Buying FB at the open and holding into the close. Historically this has been a Positive EV play. Without getting into the details the gains have been sizable with this setup. A word of caution, the sample size is very small on this setup.
I am going to look at the options after the open and if they are not outrageously overpriced I will buy several weeks out, out of the money calls.
Otherwise, I might trade the stock itself for this setup.
We also close a bottom reversal trade a few days ago with a sizable gain. These do not come along very often but have a nice positive EV to them. And a sizable sample size:)
Other than the E.U. trade deal not much new other than the daily political madness that is generated every day. I try to tune out the madness and stick to what is relevant to the markets.
One thing to keep an eye on is that several members of the House have filed Articles of Impeachment against the Assistant AG Rosenstein.
I doubt this will go anywhere as Ryan most likely will not bring it up for a vote and even if he does I doubt there are enough Republicans that will vote for it to reach a majority.
But if it looks like this is going to pass expect some fireworks that might affect the Stock Market.
I will post any trades I make this morning on my private twitter feed @rickjswings. Its free so take a look.
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