It looks like Trump has done the impossible. He has successfully renegotiated NAFTA and the markets are loving it.
The indexes are up well over 1/2% an hour before the open.
Of note, TLT is down sharply, Metals soft, Financials strong.
This to me this is a very positive premarket bias. This is not the time to trade a gap fill. I would be looking for a gap continuation trade today.
The news at home is as chaotic as ever. Flake, the chaos agent, threw a wrench into things when he insisted on a 1-week delay for the FBI to do another investigation into Kavanaugh allegations.
Then, after creating chaos, he heads to do a show on TV and makes a statement that he never would have done that if he was running for reelection.
I have to hand it to him he has set a new level of stupid for Senators.
It looks like Kavanaugh will be confirmed now within a week or so. The odds keep improving on his confirmation.
This is important in that Kavanaugh going down, in my opinion, would have a very negative effect on the Stock Market. It would mean that the Senate had broken down as a viable governing entity.
The market would not react kindly. Keep a watch on it.
But the big news this morning is NAFTA. It has been renegotiated. With very positive implications for the U.S. Like the tax cuts and deregulation, this is going to create a very large tailwind for the stock market.
Not much on the international front. Although it appears that very positive developments are occurring in N.Korea.
The question market on the international news is Russia, China, Iran, and Syria. This is going to an ongoing thorn for the markets as tensions rise and fall. It is something you want to keep track of also.
Again, a lot going on. Trade price and keep the news in the back of your mind. But the saying price is king could not be more accurate.
I have a number of trades this morning. I doubt I will be looking for a swing trade this morning, but I will be looking for a good entry in SPY as a gap continuation trade.
I can say that this could well be a very strong trend day.
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