The Stock Market is continuing its bounce this morning as some of the news this last week is taking a back seat to earnings.
Syria now is an uncertainty as the Russia rhetoric has subsided a bit and there is a reasonable chance of no air strikes as the White House and their advisors are mulling it over.
The shock and awe of the Cohen raid have also subsided a bit giving some much-needed respite to the markets.
But as Trump put it ” Calm before the Storm”. I doubt he was talking about N. Korea at the time as was a common thought. It’s most likely the indictments coming down as a result of the IG report very soon. But who knows 🙂
In any event do not get complacent! As even though the news has subsided now I suspect we will get another batch of earth-shaking news soon. That you can almost bet on, not that I am a gambler.
So the best thing to do here is patient. An indicator I look at is how the Nasdaq is doing relative to the SP500 on a weekly basis. Last week it triggered a sell signal. This week its close to reverting back to a buy signal. Its something to watch as most of the gains of the market is when the Nasdaq is leading.
I exited AMTX the other day for an about a 6% gain. Now I am waiting for a pullback to take another swing at the stock. So far I am hitting 100%.
Mean reversion trades are out of the question right now and anything else right here is pretty risky. So for a while now I will be sitting on the sidelines, at least as to what I post for trades.
Remember, we still have the Fed in tightening mode (a big mistake), the deficit, nothing concrete with China on trade, Syria, and the special counsel / IG report.
A lot going on and there are vultures just waiting to pounce on the White House the first chance they get from both sides of the Isle:)
It has amused me to watch the politicians show no concern at all about the raid on Cohen. And of course, the ACLU applauded the raid. If anything the events have shown that the partisanship is not restricted to Congress. Its infiltrated all areas of the U.S. even areas that theoretically are supposed to be impartial and protective of the citizens’ rights. Sad to see in my humble opinion.
If you’re at all concerned about it and want a centrist opinion from a moderate democrat libertarian. Allan Dershowitz is expressing his opinions almost daily on what is going on. He gives the most reasoned logical analysis you will find. If you’re a Democrat, he is in your camp and voted for Clinton unapologetically, If you’re a republican he is a moderate and well worth paying attention to.
If your in the extremes of either side, then you will not like to hear what he has to say. But it might give you a better grasp on reality.
Afterall, if your a trader reality is what is essential to being a profitable trader.
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’s Handicapping Picks