Nothing like the month of October to test your resolve in the Stock Market. We are in a correction, and it looks like it is not over as the indexes are heading south again this morning with the Nasdaq leading the way.
Of note, TLT is off 1/2%. Typically I would consider this to be a positive bias for the indexes but not so sure at this point. In addition, Oil and Metals are in the read this morning. Financials are mixed. That is positive.
Overall, a neutral premarket bias, at least that is how it appears to me. The stock market is oversold, but not yet at a point where I want to start a mean reversion trade.
Ideally, we get a washout move to the downside. Then I will get interested. I will just take it a day at a time for now and see what develops.
On the news front just as things had settled down, out of the blue Nikki Haley is out as U.N. ambassador. I have been looking for the betting line on a replacement but so far cannot find one. Should be interesting. On interesting idea I saw was Powell be moved to the U.N. so he cannot do more damage at the FED:) I doubt this is under consideration. But it happens, it will propel the dollar lower, materials higher along with the market higher. The odds, a long shot, unfortunately.
In addition, it appears Hillary has gone into high gear now just 30 days before the midterms. Yesterday she mentioned that Democrats should not be civil to Republicans. An interesting statement from a former American leader. But these are the times we are in now.
On the international front, not much new. No flare-ups overnight, and that is a good thing:)
I am watching a number of stocks right now, but the market is going to have to show some semblance of a reversal before I start getting interested.
In times like this, you have to be patient. If you are not patient you will go through a lot of money. It’s tough enough when you are patient. Very similar to playing poker. Once you lose your discipline, say goodbye:)
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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