The stock market is gaping lower this morning 30 min before the open.
Of note, Oil is lower, but most everything else is hovering around the 0 line.
I view this as a neutral premarket bias and would not be surprised to see a gap fill quickly this morning.
I exited by GLD trade yesterday for a small loss. As I have said in the past these bottom reversal trades show a little less than a 50% win rate, but the gains far outweigh the losses.
The stocks that have been moving geometrically the last few weeks have been the Marijuana stocks (CRON and TLRY) . Up another 8% this morning. I have been long and caught some of the moves, but got out of my last shares yesterday.
On the news front, it has been pretty quiet. The headlines that are the most significant in the order of potential effect on the markets is:
1. Canada trade negotiations resume
2. The special counsel, Mueller, has agreed to written answers to questions rather than oral answers.
3. The Kavanaugh hearings have begun with over 70 people arrested the first day of the hearings, with at least as many expected to be arrested today.
Leaked communications revealed that Schumer and other Democratic leaders have coordinated the Demonstrations, even the ones taking place in the Senate.
No doubt, they will get a pass on these ethical lapses.
I remember the time many years ago where the Senate was the voice of reason in the U.S. Congressional system. The House was the rowdy ones but the Senators rose above it all(except isolated instances) and brought sanity to an insane process.
Those days are long gone. And its affecting legislation getting out of both bodies. Without the “Reid” rule, the lawmaking bodies would be a virtual standstill. Harry, did not know it at the time but did his party in when he took away the filibuster. And, they are getting more punishment than they ever imagined:)
Short range thinking for Long range increased risk. Never a good idea no matter what endeavor you are in.
NIKE ended up off about 3 % yesterday, with it being unchanged this morning. My guess is there is a lot more downside. The cost of entering the SJW arena is going to be more than they ever imagined in my judgment.
Regardless of what side of the issue you are on here, there is still an opportunity to be made shorting companies that enter the SJW arena. Dick’s Sporting goods is an excellent example. Some, get hit for a short time some go out of business eventually.
If you cannot bring yourself to short a company for this reason because of your political views, my suggestion is to get out of swing trading.
Politics and trading do not mix well, except for finding short-term opportunities.
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’s Handicapping Picks