Markets are heading higher just an hour before the open.
Of note, Financials strong, Metals weak as is TLT.
A strong upward bias in premarket.
It appears my mean reversion trades might catch up a bit today if the market holds.
I have SSO and AGN along with calls on IWM and TDC.
My goal today is to manage my trades as I doubt I will be adding to anything this morning. New trades also most likely will not happen.
Event risk is much too high right now for me.
You have N Korea along with Sanctions now being imposed on China.
At home, things are heating up also a bit. Charlottesville mayhem resulting in 1 death and our politicians loosing it over Trump’s statements after the rioting.
Things are not going to calm down anytime soon. I suspect they get much worse. In addition, Congress will be hitting the debt ceiling when they return. This always sparks additional chaos.
The Dems are threatening to close down the government if the wall is in the budget, and Ryan is thinking about how he can jettison the wall without losing his declining popularity. A tough assignment.
So, the drama will continue without letup. The American people will get no rest from this insanity. And we have seen the markets getting nervous.
On the political odds front, the upcoming Alabama special election is on tap Tuesday. I had suggested Moore was the choice a month ago when the odds were Strange at 2 to 1. Moore is now almost a 2 to 1 favorite. I suspect it will be an easy win for him.
If he pulls it off I suspect it will be a glimpse of what is to come in 2018. Establishment republicans are going to take a beating they will not forget for a long time.
Several reasons for this are the Health Care Debacle and the failure of establishment republicans to back Trump. I many instances they are doing whatever they can to undermine him. The base will not sit still for this. And the establishment republicans are in denial. This if they had a modicum of intelligence would be a wake-up call.
But most likely they will double down on their politics which will devastate them in 2018. I doubt the Dems will benefit but it will be the nonestablishment Republicans. Just a hunch:)
If you have not wagered yet I would consider taking 8 to 1 against Ryan and taking 2 to 1 against Flake. Ryan should be no more than 3 to 1 and Flake I believe they have the wrong favorite.
Back to the markets for me 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