As I said on Wednesday if the Fed does not raise rates the stock market blast higher. But wait, the fed raises rates and the market blasted higher?
If you thought the market was logical, it is, in a perverse sort of way.
Going opposite the news has long been a pretty good strategy. So you had the market weak in anticipation of a rate hike. The fed hikes. The market reacts to the upside. This is a recurring pattern that you should be aware of, as it repeats often.
Another pattern to be aware of is to gauge how the market reacts to both positive and negative news. The market reacting strong to a rate hike indicates to me that this rally is far from over.
This morning the markets are gapping up on the average +.20%.
Of note, Gold and Silver +3/4% GS+.53%. After that not much to note that I watch premarket.
On Wednesday I added 4 swing trade longs. All showing a nice profit this morning. As I explained, I only share trades that are generated by my analysis. Any trades I take based upon traders I know and respect enough to take some of their trades, I do not share.
I have been getting quite a few emails lately regarding sharing all trades. It would not be ethical to do that, and as most that have been following me over the years, I try to be extremely ethical in my dealings with others. Always have and always will.
With the rally yesterday the picture is a bit mixed. On the one hand, the oversold market has become more to the center but then again the rally was strong enough to expect more upside.
I am going to trade this with swing trade longs, depending on how $ADD is looking after the first 15 min of trading. I use $ADD to gauge my interest in swing trading for the day. If we are getting readings >+1500 or <-1500 the probability of a trend day goes up.
Those are days you do not want to be fading the move of the day. Plus or minus 400 is going to be a boring day. A range day.
Anything else it gets a bit more complicated:)
We have the NCAA Tournament starting in earnest this morning. So that is going to keep me pretty busy today and tomorrow. I typically answer questions during the morning, but the next few days I may not be able to get around to it.
Ideally, for me today is we get a nice follow-through to the upside! We will see:)
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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