I am sticking with my idea that we may see new highs during the first 2 weeks of may and then head for the exits with either a 10 to 20 percent correction or finally the end of the incredible bull market.
The Fed tightening, Gridlock in DC, ever increasing violence here at home by the so-called “resistance” egged on by the mainstream media and some in Congress, tourist travel at historic lows, out of control corruption in DC, and of course global hotspots: Iran and N. Korea.
The entire premise of this Trump rally was that he would get things through Congress to stimulate the economy. He is doing all he can do by himself in rolling back regulations, however, Congress is doing all it can do to quash the Trump the agenda.
This is because of incompetence, special interests and the desire to make Trump a one term president. Unfortunately, this desire is not only for the Democrats but some in the Republican party.
Combine all this with the Fed in insanity mode thinking tightening is the way to go and it is a recipe for disaster for the stock market.
How close will I come to this prediction being right? We will see:)
Myself, I am still long GLD as my system has not given me an exit. In addition, I have a few swing trades and that is about it.
I will be swing trading but all trades will have a very tight leash. I have no desire to get caught in the swoon I see coming soon.
This morning the market is down -18% 30 min before the open. Of note, Financials are off, biotech up, oil up, TLT up, metals down.
A mixed bag but one that points to a bias for the market to be weak this morning.
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
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