The drain the swamp candidate through hard work and luck gave the republicans a reprieve 10 days ago as they had consoled themselves to losing the Senate and the Presidency. In some corners, it was thought the House was at risk also!
But ” Drain the Swamp” caught on and the people in part because they are fed up with the corruption of the political establishment went against popular wisdom.
So, what is the first order of business in the house when they get back into session? Earmarks or more popularly called Pork Spending. Spending in order to grease the wheels of our politicians to help get bills passed.
Or, in other terms bribery for doing what they should be doing in the first place.
This shows you how tone deaf politicians are. How detached from reality they are. I did not see who the moving force was in the Republican Party around this insane idea but Ryan, the speaker, put it to rest. Essentially saying the people have spoken and it will not be business, as usual, this time around.
How long that lasts remains to be seen:)
Another thing to note of interest is the Yellen has indicated she plans on staying 2 more years which to complete the term of her appointment. It will be interesting to see how this sits with Trump. I can see arguments on both sides. Arguments that are mainstream and also arguments that touch on the borders of sanity where I am prone to go on occasion!
But the best thing as a trader is to recognize that the markets do not need an ideological war between the Fed , Congress, and the White House. Viewing Yellen’s performance since she took the helm I am confident she has the ability to do a good job. My only criticism with her is 1. the inability to Keep her and her cohorts speculation as to what they may or may not do in check and 2. a few isolated ideological statements she has made that have no place for the head of the Fed (not in the job description)
If it does turn into a battle this would have a very harsh effect on the markets with volatility increasing dramatically if that is possible.
In these comments in the morning, I try to pick out one theme that can affect in some way the markets on a bigger picture. Typically what I talk about here in the morning will not be an immediate concern but something to keep a watch or be aware of.
I am long and looking to get longer. The markets are taking a breather right now and in my opinion consolidating for an explosive move higher into January.
This morning the market is unchanged 15 min before the open. I will be looking for breakouts today from my short list of candidates and also be looking for medium term pullback and breakout trades to hold longer term.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. 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