The market looks like it could go either way at this level in the short term. That means for swing traders that you are most likely looking at chop today.
Mean reversion right now is not a consideration and break out trades need to have the strictest rules that you use. Swing trading also will be a challenge. Otherwise you will join the many traders that are getting whipsawed right now.
Myself I am long one stock and short three. The shorts I took buying puts which I explained last week.
On the agenda this week is quite a bit of Fedspeak. Our schizophrenic Fed is now in Hawk mode but the market right now is not that interested. But that can change on a dime.
In addition you have the UK referendum on the EU exit June 17th which just happens to be 2 days after the June Fed meeting. I really doubt the fed will raise rates before the referendum. A good trade would be a long going into the Fed meeting with the idea of selling after the referendum gets defeated. Betting odds now are very high in favor of no exit. So if both scenarios come through you stand to make a bit of money. Best vehicle would be Calls if you can find some that are priced right. Or just outright buying SPY. At the very least it will be interesting:)
Today its back to being very conservative in choosing my trades. Not that I am a wildman on other days but lets say today more conservative then most days!
My prediction for today…..chop. So pick out your best oscillators and attempt to trade the extremes on the 5 min charts if our trading the futures market. That also can change but the first 5 to 10 min will confirm this or indicate another type of trading day.
If you wish to follow my trades join me at @rickjswings. It’s my private twitter feed and is free for the time being. Until I have more time to devote to the stock portion of this site it will remain free. My private trading and the handicapping portion of this site are taking up quite a bit of my time. I refuse to charge for something I cannot devote a substantial part of my energy too!
Good Luck Today
RickJ
RickJ’s Handicapping Picks
