The Stock Market is almost unchanged this morning as we start the week.
Of note is weakness in crude and that is about it.
We are pretty much in nowhere land right now in the markets. They have been pulling back a bit and my thought is the pullback is not finished yet.
Where the first two months of the year were knockouts for me on my swing trades, this month has resulted so far in a small downswing. In addition, I have 8 swing trades on. Two of which are longer term swings. In addition two that I have, I shared on my twitter feed.
Last weeks caveats by way of a rate hike and debt ceiling went without incident. As did the Dutch elections.
Now we have the Healthcare vote in the house and then it goes to the Senate. I have no idea how the vote is going to turn out.
Perhaps it will pass in the House but the Senate I do not see how it will pass in its current form. Assuming the Democrats stick together and vote no in the Senate, I doubt they can keep the Republicans in line to get it passed.
Regardless of the merits, there are still too many never trumpers in the Senate to get the bill through. In addition, I find it difficult to imagine any health care bill getting through the Senate.
If I am correct, then this most likely will not bode will for tax cuts and I anticipate the market will act accordingly.
This is what to keep a watch on this week. We have the Fed raising rates in part because of the Trump agenda, but if the agenda gets stalled you have rate hikes with the rate cut policy in jeopardy.
This, in addition, does not consider the budget which for the first time in a long time was cutting big government.
Between the Democrats how will just vote no and the Republicans that have special interests to account for Trump’s budget is most likely dead on arrival in the Senate. After all, wasn’t the first thing the Republicans wanted to do was bring back pork in the bills!
Term limits are the only answer. 2 terms max with a ban on working for special interest lobbying groups when they leave office. In other words, they are there for the people, not their own enrichment.
That is my rambling for a Monday morning:)
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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