The stock market is soaring this morning 90 min before the open!
All is well (at least for now), the spending bill and tax hike is behind us. Word is that China and the Trump administration have been working behind the scenes to resolve their trade dispute. And the 60 min Stormy Daniels interview is over:)
@The_Real_Fly said it best:
I HEREBY SENTENCE PRESIDENT TRUMP GUILTY OF BEING A DEGENERATE NYC BILLIONAIRE, THE FIRST OF HIS KIND, TO LIVE OUT THE REST OF HIS DAYS IN THE WORST PLACE IN AMERICA — THE WHITE HOUSE
If you do not read the Fly’s site you’re missing out on some of the best humor around (if you like his dark kind of humor) and once in awhile, he has some good stock tips. I read it daily:
QQQ is +2% with the rest of the indexes +1.5%. Of note, IBB +2.17% financials +2%, metals positive, oil and tlt negative.
Overall a very positive bias.
There is a lot of potential today for a very large trend day to the upside. There is a lot of positive news and if there is an announcement that an agreement with China has been reached and Tariffs are reduced or eliminated it could be a monster move to the upside.
And last but not least Congress is out of session for 2 weeks now:) Heaven!
So what could go wrong? Think IG report and Mueller. Still, a serious cloud hanging over not only the Presidency but the markets also. I suspect we will come very close if not to a constitutional crisis before all this is over. How it plays out is hard to predict as there are so many unknowns and misinformation out there.
Myself I have some thoughts which are not the subject of this site. But needless to say, it has the potential to produce substantial volatility. We are seeing what substantial volatility looks like first hand now. But if the market starts to believe that Trump is going to be removed from office prematurely the moves we have seen will be peanuts compared to what will happen.
In addition, we are rapidly heading close to the “sell in may” theory. My observation is it is a valid one as most of the gains in the markets outside of this period. There is money flow phenomenon that has been pretty reliable over the years.
A lot to think about these days. But if your a swing trader which includes mean reversion trading it becomes a little easier.
I have one 3 mean reversion trades: QLD, SSO, and CMCSA. All 3 will take a nice shot up this morning but will still be aways from an exit.
I also have a trade with AMTX which I have been using as a range trading vehicle. It’s rare to find a 2.00 stock where you can pick up 10 to 30 % several times a week:) So far we have been doing that with very little risk. Will be interesting to see how long this can last.
I posted some comments Sunday afternoon and will try to have a Sunday post, especially when we have been getting some big moves.
I doubt I will have any trades this morning. Very tough to buy into a big gap. Although if there was one you might want to give it a go.
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