Markets are gapping up this morning with IWM and QQQ leading the way.
Financials and the dollar are strong. Oil is strong. TLT is getting crushed.
This has the making of a big day for the markets. We are 20 min before the open.
I am long UUP, QQQ, and IBB
I may add to my IBB position depending on the Open.
On the home front, Non-establishment Republican Moore won easily in the GOP Senate special election. Now look for the other GOP Establishment candidate odds to start dropping.
This means to me that both Heller and Flake are finished. And Ryan will be very lucky to win the Republican Primary. Trump’s base is very unhappy with the establishment Republicans and it will not bode well for them in the GOP primaries.
5.5 to 1 against Ryan is a gift as I see it. If you’re nervous about it than lay it off at 2 to 1 a day or 2 before the primary.
Already you have Corker withdrawing from the primary. There will be more.
On the international front things are quieter for now. But as we know, this can turn on a dime. N.Korea is the hot sport right now.
What the Moore win means for the market is that
1. As I explained yesterday the Republican establishment if they were smart would not start pushing the Presidents agenda. I doubt this will help them but it might save a few.
But I doubt they are going to be smart about it. They may even double down on the self-destructive strategy they have taken. The upcoming tax care bill will give us a clue.
2. Long-term if enough Republican establishment members get canned in favor of non-establishment, you will see some big changes. If Trump survives the special counsel investigation, you will see Sessions canned and an aggressive prosecutor put in, to finally as Trump puts it “drain the swamp”
That’s a big if however. Too early to tell how this is all going to play out.
If you’re a Democrat or an Establishment Republican I give you my condolences. As the trend now is that non-establishment Republicans will win the day for awhile now anyway.
Myself, I sit back and enjoy the show. Beats watching Game of Thrones by a long way. Pure entertainment. And it should be for everyone that has analytical skills. Do not get wrapped up into the emotional side of politics.
Much of what both sides spin is just that spin. Designed to stir up the citizens. Which they have done an excellent job at.
As long as the tax care bill goes without too many hitches and Yellen does not go any further off the deep end before she gets booted in February the markets might just hold up.
Again, I doubt this tax care bill will go without a hitch. You can count on McCain to be against anything Trump proposes, along with many of the other never Trumpers. They need 50 votes and I do not see how they get there. But stranger things have happened.
Depending on the breath today I may take some day trade longs this morning.
We will see:)
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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