The Stock Market is up sharply this morning an hour before the open. DIA and IWM are up almost 1%.
Of note, Financials are blasting to the long side, IBB is strong, Metals, Oil and TLT weak.
A positive premarket, with financials this strong (BAC up over 2%) the day has a nice potential for a trend day. All the news coming into today is positive, Tax cuts look probable and the news on Trump turned out to be an ABC error.
We will see how long this will last:)
My bottom reversal trade in WEAT is looking pretty good right now. 6.11 is the new mental stop.
I am watching a few other trades for bottom reversal with UNG being on the top of the list.
My system trade in GLD is underwater but no exit signal yet. I pretty much stick with the system and go with whatever the outcome is. When you have systems you rely on its usually a mistake to let the human factor interfere.
With biotech turning around now I suspect my mean reversion trade in XNCR is on the upswing now finally. If this is a real reversal XNCR will blast off.
As to the news, I am still not sold on the idea that the tax bill is going to go through without any hitches. It goes back to the house and then any changes have to be reconciled. It would not take much to kill the bill. I suspect there are plenty of special interest groups putting pressure on the weak hands in the Senate to kill the bill.
But we will see. Also, with Flynn pleading guilty one can see the hysteria that evoked from the Friday report. Both political and financial hysteria. The market was off almost 400 points shortly after the news broke. That is just a taste of what is to come if there is any attempt to remove Trump from office.
There has been rampant speculation as to what this all means, from Flynn, will now provide the evidence against Trump needed to remove him to the idea this is all a ruse to get at the illegal lobbying in both parties.
Myself, I have no idea at this point what the future will bring with the special counsel. The only thing I am certain about is that the leaks, both real and fake, will affect the market dramatically. You do not want to be overextended right now. No margin trading.
Then we move on to N. Korea. That’s another wildcard that could blow at any time. I suspect there is a lot going on behind the scenes that we do not know about in the way of diplomacy. So I doubt the risk is as great as some suggest.
So, keep a watch on the tax bill. That is front and center right now of the news that is going to affect the markets.
I will be around on the open. Let’s see if I can find a reasonable day trade this 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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