The stock market got a boost yesterday as the shutdown ended quickly.
My prediction was off the mark as I did not think it would end this quick. So much fanfare was made by the Democrats in Congress when they shut it down, that I would have thought they would have toughed it out a while longer.
But the blowback must have been severe for them to change course so quickly.
In any event, things are going to be back to normal in D.C., and that means beware. Normal in D.C. is so far from what the everyday American thinks is normal it is scary:)
The shutdown risk is behind us and we have something new to worry about. A trade war with China!
That will be the headlines now until the next event.
Let’s take a look and see what the stock market thinks about all of this.
SPY -.04% QQQ +.29% DIA +.04% IWM -.19%
A big yawn!
Of note, IBB Metals Oil TLT all positive, financials negative.
A mixed premarket to me. TLT being positive with financials negative indicates to me some risk to the downside early this morning.
I exited FB prior to the close yesterday. It was a mean reversion trade that I entered on 1/17 at 178.97 and exited 4 trading days later at 183.85. A 2.7% gain in 4 trading days.
I still have my mean reversion trade in DUK. I entered on 1/17 at 78.30 and it is trading this morning at 77.50 premarket. So far no exit signal. Typically I like to see the %R break 50 before I exit a mean reversion trade. With DUK it is at 3.98 as of yesterdays close.
I am watching a few other stocks right now but with the market taking off again mean reversion trades are not very easy to find.
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