Up Up and Away is the theme for these markets right now. How long will it last? Rest assured not forever:)
But right now enjoy the bull ride. I exited my mean reversion trade for a quick 2 day gain of 3+% in SSO.
My GLD trade is settling back a bit this morning and we are close to triggering an exit on the trade.
GEO just will not stop as it is up 2.74% in premarket trading. I do not expect it to open there however so let’s see if the gains in GEO continues.
It seems all has settled down on the homefront and geopolitical fronts for now.
The only thing that is an uncertainty is when the Senate will get around to confirming Trump’s Cabinet. As it is looking right now the Democrats have made a major mistake holding them up. Trump’s popularity right now is skyrocketing with mainstream Americans. This idea of Schumer being an obstructionist so far looks like it will backfire badly.
Combine that with the DNC going even further left (if that is possible) and unfortunately, our two-party system seems like it is in jeopardy. If you wish to have your anxiety rise substantially all you need do is listen to the individuals rhetoric that is running to head the DNC. It seems they are abandoning the bulk of the Country for a small percentage of the people that are on the far far left.
I hope I am wrong as to me a strong democracy needs a healthy two-party system.
Short-term all that is going on in the U.S. is like a shot of adrenalin for the markets. I do not see that slowing down anytime soon unless Congress takes a stand to defy what Trump has in mind for the Country.
The thing to watch is Trump’s popularity ratings. If they start nosediving than its time to be concerned about the markets. I have no doubt that if he stumbles badly the wolves will be at the door.
One other thing to watch is both Conway and Bannon. If for whatever reason they leave Trump its time to be very concerned also.
Right now the markets are very overbought. It’s tough to put on new trades right now except for perhaps a day trade swing. However, any pullbacks look like good opportunities to buy for now.
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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