The Stock Market is gapping down this morning lead by the Nasdaq.
Of note, Metals, Oil and Natural gas are strong, while financials are weak.
Negative bias prior to the open. However, seasonally we are in a very strong period now. A gap fill trade would not be that unreasonable this morning.
I have several trades on that I have shared. GLD is a system trade that is slightly negative, however, GLD is now on the rebound. TUR is a bottom reversal trade that is working out very well. We have about a 6% gain so far on the trade. XNCR is a mean reversion trade. We took a nice dip, more than usual in a mean reversion trade, however, it being biotech and it’s not that unusual. I am sticking with XNCR as I feel biotech is due for a nice rally soon. Finally, I put on a long in TLT last week as a mean reversion trade. I have a 1/3 position in the ETF. So we will see how this one ends up.
Things are quiet on the news front over the holidays. Unless you’re listening to the mainstream media. If your listening to them the sky is falling every day:) If you’re going to trade, its essential you get unbiased news. A good source in the mornings is Maria Bartiromo and also Stuart Varney. They both are conservatives, however, they give a very balanced view of the markets.
Whether you’re a conservative, liberal, SJW, or a member of Antifa you need to stay balanced in your investing. It’s tough even when you are balanced in evaluating issues, but impossible if you’re letting your political leanings steer your investment decisions.
That would be a good new years resolution if your finding your political bias is affecting your trading.
This week should have an opportunity on the long side. But the volume will be light.
I will be looking for a trade this morning. I have a mean reversion trade if it sets up on the open. I will share that if I take the trade on Twitter @rickjswings.
Also, let me mention, that 2018 shapes up to be a packed year of news-driven events. We have a new Fed Head coming into the Federal Reserve, our Congress is broken, the risk of instability at home is increasing while tensions with Russia, Iran, and N. Korea are reaching fever pitch levels.
I will have more on these in the coming days.
Come join me for the open.
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