Shutdown Friday is finally here. And so far it looks like a shutdown is going to happen. How will the stock market react?
Not as a result of anything that has happened in the House but the Senate continues to be the more dysfunctional branch of government.
Historically it has been the House that was the unpredictable branch, but things have turned and the Senate has broken down completely.
What is remarkable is the markets seem to be taking this so far in stride. Whether it is because it feels that a shutdown is not big deal or because as in the past a temporary spending bill will be passed at the last minute remains to be seen. I guess we will find out if a shutdown takes place:
I have been out of action the last two mornings as I have some family business that has taken a priority and will most likely continue for the next week or so. I will try to post updates as I can.
I added 2 mean reversion trades that I sent out on my twitter feed (@rickjswings) FB and Duk. So far we are away from an exit on both. However, if we get a big rally in FB today we may be out with a nice gain weekend.
Where the market goes from here for the rest of the day is anyone’s guess. In the backdrop, we also have the house intelligence committee report that has a move in hand to be made public. This almost certainly is a market moving report once released.
I will update as I get a chance. But beware, event risk remains high along with increased volatility.
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