The stock market has reversed from overnight trading with the ES down 20 pts from the overnight high.
That drop is pretty meaningless so far with the run up from the bottom reversal we have seen so far.
The only thing you can draw from it is that volatility is here to stay for awhile. If you only trade with tight stops you had best stand aside for the time being.
Of note, TLT strong this morning while financials are weak. Overall to me, this looks like a negative bias this morning.
But we are still in a reversal after the carnage from last week. and there is no indication so far we are heading back to test those lows.
I exited my SSO trade for a very small gain. I had a 125% position in the trade. And we weathered some pretty dramatic drops in the market to squeak out with again.
I still have a position on in UPS. That is the last mean reversion trade I have the ones I put on in this last downswing.
If you have been following along your getting a taste of how these mean reversion trades work. Sometimes they work like a charm. And sometimes they work like they did last week:)
Today it is managing my open positions. I do not share all my trades but only a select few as they relate to specific systems I wish to share. The reason is I do not have the time in the morning to share everything I do. Sometimes the morning is very hectic trading. Yesterday morning was one of them where I did not have time to even post anything. Also having to leave shortly after the open contributed to that.
As expected, immigration reform could not get out of the Senate. To say that institution is broken is an understatement. I have no idea what is going to get the Senate back on track. Perhaps, first of all, require Senators to run every two years like the House would be a start. And also term limits would also go a very long way to helping.
And while we are creating our wish list, let’s go with reforming special interest money flowing into D.C.
If those three things were changed we might get back on track to getting D.C. out of the dysfunctional environment it is in.
I will not hold my breath however.
So where does Congress go from here on Immigration? Will for starters blame everyone but themselves:) And they are in hi-speed doing that of course.
Got to run as the market is opening very soon.
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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