This is getting boring. Are there no emergencies lingering to derail this market before year end? The only thing of consequence I have read is the U.S. adding more sanctions on Russia. This is after Russia, Syria, and Iran meet to broker a peace agreement without the U.S. or the E.U. involved.
That’s it and I doubt that will sit well with the Russians who have already indicated there will be consequences for this.
Now, I am not an expert on geopolitical matters but it seems to me that it is in no one’s interest to fame the flames between the U.S and Russia. I was optimistic about the Russian reset when introduced by Obama and Clinton but for whatever reason, that reset resulted in the relationship between the two countries now reaching dangerous levels for two nuclear powers.
Regardless what you think of Putin or Russia’s policies there still needs to be some mutual understanding between the countries to assure peaceful existence. To taunt another nuclear state that leads to the escalation that happened just before the election is suicide. Immediately after the election, we went from Defcon 4 to Defcon 1.That is how high a potential conflict was before Trump was elected.
I bring the above up as its most likely going to be the thing to watch during the first few months of the Trump presidency. If Trump gets his way relations with Russia will improve substantially. But it will not be easy as there will be McCain, Rubio, and Grahm trying to sell their version of insanity while the Democrats will be pushing the politically motivated idea that the Trump administration is rewarding Russia for putting him in the White House.
The bottom line is to expect volatility over this after Jan,20th. And no matter what your political leanings hope that relations are brought back down to a reasonable level between U.S. and Russia.
The markets this morning are about unchanged. Looking over the landscape the only premarket trading of any significance in what I look at is TLT continuing its plunge off .5% and hour before the open.
I am long looking to get longer today. This pause yesterday along with and additional weakness today sets up a very good buying opportunity into year end. I wish to take advantage of it today and will be looking for some exposure shortly after the open.
My expectation is a bounce taking out Dow 20,000 very soon and continuing through year-end. But remember at some time most likely in the near future this market is going to correct. It has been straight up since the election.
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
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