A change in character this morning for the stock market after last weeks carnage:)
We have the stock market gaping up over 1 % an hour before the open.
Of note, all green except for TLT which is unchanged and the U.S. dollar which is slightly off.
A very positive configuration for the markets starting out this week. Some potential for a strong trend day up triggered by traders fears of missing out and stops getting hit.
The key to these markets is not to get whipsawed around by the volatility. If you customarily use tight stops, then this is not the market to be trading in right now.
On deck are immigration reform and infrastructure. Both look to be highly contentious.
I have a number of mean reversion trades going right now:
1. 125% position in SSO
I suspect if the gap holds and we get a trend day up I will be exiting SSO. NTAP also might trigger an exit. UPS not so clear right now.
Also, I doubt these trades will end up showing gains. However, the losses should be small. Hard to show a profit when you have to weather a week like last week!
Today most likely no new trades. I plan on managing positions today which should be easy as my exits will be at the close if any.
I will post a more detailed report tomorrow. Have a lot to do before the market opens.
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