Another day another gap up for the stock market. The more warnings I give the more the market rockets up to new highs:)
Of note, Metals, IBB, Natural gas, strong. Financials, dollar, and oil weak.
This looks like a slightly negative bias to me. I might as well be consistent!
I am out of all positions now that I have shared. Although I am getting a nice list of bottom reversal candidates:
Three are in commodities but is not consistent with the dollar being oversold. So that is something to keep in mind. An overbought dollar combined with a commodity bottoming would be more in line with a reasonable picture of things.
Its still DACA and the IG report. Monday is a big day as the IG report is anticipated being a real shocker.
DACA has reached the insanity level. You have a gang of 6 now who privately meets the President to go over their plans, and then leaks a comment to the press about what Trump purportedly said about shit countries.
Quite a group of congressman we have who want to sell a proposal to the President and then stab him in the back with leaks to the press.
If anything they have hurt the DACA agenda by this action. You do not reach compromise and consensus by backstabbing and trying to humiliate the person you need to agree to the proposal.
That is how insane our political situation in the U.S. has become.
Yet remarkably the markets are set to gap up again today and ignore the political dysfunction in DC.
Keep a watch on these two issues. Also, we have the budget and now Moodys is making some grumbling about lowering the debt rating of the U.S. (that could be fake news as I have not verified it)
I was asked about the odds of a DACA deal before the end of March. I have not looked it up recently but I put the odds at 10 to 1 against. I just do not see the house and senate getting enough votes to get anything done.
But one never knows, if enough money is given to our politician’s anything is possible:)
Enough cynicism for this morning. I will not be around for the open on Twitter this morning. I will try to get back on schedule next week.
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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