The Stock Market has a strong day on Wednesday and it looks like it will continue, at least on the open.
The stock market is up over 1/4% across all index’ with QQQ leading the way.
Of note, all I see is green this morning even TLT.
That to me is a neutral premarket bias.
One thing you can agree with regardless of your political leaning is that every day is a news day.
On Wednesday we get the hostages home from N. Korea, we have Israel and Iran fighting in Syria openly, and we have a new revelation by Stormy Daniel’s Atty about Cohen.
Each one of these alone could have an effect on the market. All three together who knows what they will bring.
N. Korea is nothing but positive for the market as it seems to show that so far all is going well with our strategy with N. Korea.
Israel and Iran have the potential to turn into something very ugly. Right now both sides are posturing but it has the potential to blow wide open. It’s something to keep a watch on. Oil and Metals will be the most affected by this activity.
Stormy Daniel’s attorney revelations about Cohen if it were to have come out 6 months ago might have had some effect on the markets.
But every several days we get news similar to this that has turned out to be either completely false or misrepresented for what it reveals.
So for now, the markets have ignored this news. I suspect that will be the case unless something different happens with this news this time.
As a side issue is the CIA hearings for who is going to lead the department. I watched the hearings yesterday and I have to say it might be a good idea to do away with the Senate confirming nominations. It has turned into a real circus that really serves no purpose.
Purely partisan without any meaningful thought or discussion. There should be a better approach that takes politics out of the leaders of these various agencies. I off the top of my head do not know what approach that should be.
But give me a day or so and I could most likely come up with something that is much better than the Senate has to confirm heads of these agencies.
All these hearings do is allow the political dysfunction to be on full display for all to see. It could not be any worse. So do not expect to get any help in these markets from our political system. Any gains will be in spite of it.
The stock market this morning is a bit overbought. I would be looking to short somewhere here but one of my primary indicators is positive. As long as the Nasdaq is leading the [email protected] index I do not plan on taking any significant shorts.
I have a core portfolio long consisting of mostly income producing equities and bonds. I will stick with this for the time being.
As far as mean reversion it is off the table until we get a significant pullback. So far the last two pullbacks have come just shy of triggering my mean reversion entries.
So, it’s going to be a test of patience for me. Something I excel at after playing poker in Vegas full time for 15 years:)
We still have some significant events around the corner. The IG report is probably the next to hit. But, I would be aware of news to come out (True or False) to try to take attention away from what appears to be a bombshell in the IG report.
In any event, I do not have to worry about that as I have just a core position on that has much less risk to the downside in the event of a drop.
On final thing. I see where one of my favorite sites for investing education is putting out a free seminar. I highly suggest if you wish to get some good insights in trading that you consider watching this. Everything Rolf puts out is very good. https://www.tradeciety.com/rolfs-trading-strategy-webinar-join/
Good Luck Trading today
RickJ’s Handicapping Picks