Everything was looking great for the stock market until 10 min ago when the CPI came out.The stock market went from +.55% to -1.05% in 5 min!!!
An overreaction? We will see as the day progresses. If so, we should see an immediate rise back to the open. If not we will see a continuation to the downside today.
My guess is we break to the downside. When I first looked at the numbers it was all green except for oil. Now, its all red except for the U.S. dollar.
All that in 5 min. If you happen to be trading futures and were long, even with tight stops you had a hard time getting out without a significant loss. Trading around these reports can be hazardous, to say the least.
I am always looking for good books to read that will improve my decision making. Even at my age and with my experience I find myself taking shortcuts or reverting back to old discarded habits.
A few books that came up on my radar this morning that look promising are:
Principles: Life and Work (Kindle Edition)
by Ray Dalio
Thinking in Bets: Making Smarter Decisions Wh… (Hardcover)
by Annie Duke
Dalio is an investor that many follow, that has had quite a bit of success trading. Duke is a poker player who I came across only a few times when playing. But she is a top professional with an excellent record both on tournament play and cash games.
I will most likely end up reading both very soon.
My idea of reading books like this is if you only pick up 1 helpful idea in the entire book, it has more than paid for the purchase price.
Back in the political arena, Immigration is running into some bumps in the Senate. I remember back when the house was unruly of the two while the Senate was always the voice or reason:)
Things have changed now, and in exchange for reason, it is pure politics. Its all about winning for the party has virtually nothing to do what helps the citizens. If by some random chance U.S citizens reap some benefit from it all, the politicians will, of course, tout that, but in the end, the goal is to reward the politician and assure their party wins. And these goals have been pursued no matter what the cost or the collateral damage.
We can see that in everything our politicians do. Until that changes who knows what the outcome will be both for the U.S. and the stock market.
Yesterday I exited NTAP for a .5% loss. I am still in SSO and UPS. Today I will manage trades and perhaps look for some new trades early if breadth is not in trend day down territory.
For those that are interested in my worldview, all one needs t do is watch Max Von Sydow’s closing argument in “Snow Falling on Cedars” Succinct and as accurate of a statement of where humans are at the moment. But of course its even crazier then what it was when the movie was released.
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