A down open for the markets this morning with the Nasdaq leading the way at -.44%.
BAC is off 1.74% with GS following at .90%. Gld and Slv are both up over .5%.
This combination does not bode well for the markets. Typically you need the banks and Nasdaq to lead the way and they are this morning but to the downside.
So, today looks like it has the chance at an ugly day. If I get the hint that we are looking at a trend day down I will most likely cut my losses on several trades I have going now and look for reentry either at the end of the day or in the near future. Let’s see how things set up today.
Politically it just gets worse in the U.S. For the first time in History a Supreme Court nomination is going to be filibustered. The Democrats set the precedent for the Reid Rule several years ago and now they are setting another precedent filibustering a Supreme Court nomination.
What was once a great institution is now being turned into another battleground for divisive politics. This does not bode well for the U.S. The country can only take so much of this.
Combine this with the revelations that the Obama administration most likely was spying on Trump and the Trump team, a year before and after the election, and then disseminating transcripts not only to a variety of plants in the intelligence agencies but also making sure they were leaked to the MSM is going to create a scandal of unknown proportions in DC.
The markets are not going to look very kindly on all of this.
You have several bills that are going to get going soon:
1. the health care bill is being brought up again and most likely will get out of the house this time
2. Tax cut bill is in the works and again most likely will get out of the house
3. Debt Ceiling which portends a potential government shutdown is still unknown as to the result at the end of the month. There is no question in my mind that it will go to the brink, however, as I have said before the Democrats are a different animal.
So that one could always rely on the Republicans caving to create an excellent debt ceiling buying opportunity the same cannot be said for the Democrats. If they are going to filibuster for the first time in history a Supreme Court nominee as qualified as Gorsuch one would have to think they will have no qualms in shutting down the government. We will see:)
In addition to all of that, we have the Chinese leader meeting with the President in Florida. My guess is that the meeting will work out very well for both China and the U.S. Lets see how close I am to this one.
And as an aside, I ask again, why in the world is the fed raising rates now and not only that some fed governors saying 4 hikes this year???
Look for these market rally triggers:
Healthcare progress will create a nice spike up and debt ceiling resolution will also.
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
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