Look out below! Another large gap down in the stock market! What to expect today:)

The stock market is again gaping down this morning 90 min before the open. Leading the day is the dow off almost 3/4%.

TLT was the tipoff yesterday that we might be in for a down day. Today we are looking at a different picture.

Yesterday the bulls had a ray of hope with financials holding steady before the bell. But today it is looking like that safety net is gone as they are in lockstep with the gap down in the indexes.

What about TLT. Yesterday it was off 1% premarket with the markets getting hammered premarket. This morning TLT is unchanged. That again is not a good sign for the markets as one would expect TLT to be positive.

So we have another negative scenario for the markets this morning in the premarket.

So what is precipitating this sell-off.

1. The House intelligence committee voted to release the memo. I am sure the markets are nervous about what this might bring when released.

2. The Fed reports tomorrow. This could set up a nice but opportunity heading into the Fed announcement. Typically big moves should be faded heading into the announcement.

3. The rhetoric and brinksmanship in D.C. keep rising to a level I cannot remember ever seeing in my lifetime. The markets like stability in D.C. That is the furthest thing from what we have now on both sides of the Isle.

4. Geopolitical tensions are not subsiding. Putin is ratcheting up his rhetoric.

The question I am sure the market is asking is when the smoke clears what will be left standing? You have the IG report coming out, the Nunez Memo, Mueller proceeding with a grand jury full speed ahead, 2nd in command of the FBI fired.

So a lot going on for the stock market to digest.

Rumors are rampant. Spin is rampant. Misrepresentation is rampant.

I again recommend that you find a reliable news source that is not tainted by political ideology. Not easy to find these days. Matter of fact next to impossible.

But if your a trader its essential that you have a clear head and a clear knowledge of the facts.

In your quest for the facts, one thing to keep in mind is that almost every news source is going to be tainted a bit by their political leanings. There are only a handful of news people that I follow that are almost completely neutral in their observations. But they are few and far between.

So the best thing to do is stay away from the extremes.

You want a commentator that provides balance and discusses the pros and cons of all the issues. And more importantly gives the facts, not the rumors or spin.

If your looking for an early morning business program, Maria Bartiromo is about the best out there. She leans right, so if your a staunch progressive you will not like her. But anyone in the middle of either political spectrum should get some good information heading into the trading day.

Today, I will be starting to look for mean reversion trades. If breadth looks like another possible trend down day, I will wait until closer to the close to get in. If breath is showing a good chance at a range day I might consider starting a position earlier.

An update now, as I have been writing this the gap lower has increased for all market indexs. And TLT is now firmly in the red.

Not a good time to get stubborn swing trading the long side as of yet.

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

RickJ’s Handicapping Picks

rickjshandicappingpicks.com/investing

Skype: riccja

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