The stock market is hovering around the 0 line 60 min before the open.
Of note, Oil is up over 1%, while Metals and financials are down. TLT is off slightly.
To me, this looks like a neutral premarket bias.
For the first time in awhile geopolitical events are overshadowing the political dysfunction in D.C.
China ratcheted up the rhetoric with no signs of a trade agreement with the U.S. anytime soon. Saudi Arabia pulled some its ambassadors to Canada, and N. Korea is showing some reluctance to denuclearize.
Add to that Iran sanctions go into effect today, with the E.U. entering a blocking order to protect E. U. Business in Iran.
Anyone of these developments could upset the stock market. Yet we find ourselves up slightly🙂
That should indicate to you the power of corporate tax cuts along with rising employment in the U.S. Interest rates is still very low also.
On the home front, the President’s attorney indicated a decision would be made in the next 10 day as to whether the President would talk to the Meuller team.
One additional item is the Ohio Congressional special election on Tuesday. Many think this will be a bellwether for how things go in November.
The odds are 3 to 2 right now in favor of the Dems retaking the house. What this means for stock market purposes is that if the Dems take control we are looking at a high probability of the impeachment of the President.
If you think there is chaos now, wait until impeachment proceedings begin. As far as a conviction in the Senate, its unlikely however not a given.
If this scenario unfolds I expect the stock market to nosedive. I also anticipate the stock market to start considering this possibility if the Dems do take control of the House in November.
A very interesting backdrop for the markets right now. Good to keep an eye on these.
As we enter Monday the stock market is netural short term.
I will be looking for some short-term swings this morning. It’s not an ideal environment so I will keep a tight leash on these.
You can follow along on my private twitter feed @rickjswings. Its free so come 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
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