After a big run-up yesterday the markets have settled down an hour before the open. The only item of significance premarket Tlt off 1%.
Super cheap refinancing is past us for a bit now. This will most likely slow down the housing market at least until Dodd-Frank is amended or repealed.
The markets are extended now but there is no doubt we are in the midst of a strong bull market. They say the markets are predictive of the future so this bodes well for the new administration plans at decreased regulation and fewer taxes. Now if Congress will go along with the program the U.S. will be booming again.
But that is a big if. Congress has a well deserved 11% approval rating. The Democrats are hemorrhaging now but already are planning on obstruction at all levels. The GOP leadership are already showing signs of obstructing Trump also.
But what do you expect from humans? You will not get intelligence or any semblance of sanity as your dealing with humans. I sense its just going to get worse.
I have to admit though that I am a pessimist so perhaps everyone will finally come together for the good of the country. If I were a betting man I would make the odds 100\1 against that happening:)
Traders jobs are to know the trading environment they are in and use that as a filter for how aggressive they want to trade. Right now we are in a very strong seasonal period so the wind is at our backs.
I am long looking to get longer again as we head into the 16th which typically marks the beginning of the best 2 weeks of the year for the markets. But remember it’s oftentimes not a straight line up!
On the home front, the recounts are slowly failing so unless there is another trick up Stein’s sleeve that avenue is about over.
There is one other possible fly in the ointment that would hit the markets and that is the approach of changing the elector’s votes. There is an organized effort to make that happen. Already an elector in Texas has indicated he will not vote for Trump. So keep a watch as if the market even gets a hint that this could happen the downside will be swift and painful.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. 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