Markets are slightly off this morning 30 min before the open.They are well off the overnight lows.
Of note, Financials, Oil and the U.S. dollar is down.
I view this as slightly negative heading into the open. TLT about unchanged would also be a clue that things are only slightly negative.
I am still in day trade mode. Yesterday I made no trades and today it appears the shop will continue.
The one positive is that the market has become slightly oversold on the short term. A big down day today and I will be looking for some mean reversion trades.
Things have quieted down a bit both on the home from and international front.
One thing to note is that Draghi as announced no easing in the foreseeable future. So the days of easing are rapidly coming to an end. On the other hand, the Fedspeak has been quiet on raising rates.
I would not get too complacent however as there are still a number of potential news shocks that could hit at any time.
Another thing to note is that we are rapidly heading into primary season and midterm election season. With Trump’s poll numbers improving I suspect the Republican leadership will soon fall in line with the President. You can see that already in the tone of Ryan after Trump did a deal with the Dems on the debt ceiling.
Trump has finally found the correct way to deal with Republican leadership in Congress. Give them the same respect he is given by them. There is no question that they will fold first. That is what Congress is good at folding. And as Trump so accurately put it “All talk no action”.
This means that there might finally be positive talks on Tax reform, the wall and infrastructure. Its also revealing that a new health care bill is coming across early next week heading by one of Trump’s primary critics Lyndsey Graphm.
Do not get your hopes up as there are still plenty of nevertrumpers in Congress that are not going to come around to Trump’s agenda. McCain is tops on the list.
I might add when you publicly state you consider war heros the ones that were not caputred you tend to reap what you sow:) I doubt McCain will ever let that one go.
So there are some positive things to consider along with negtive ones. And yet the markets just keep moving up month after month. Remarkable
I will post any trades along with my early thoughts shortly after the open on my private twitter feed @rickjswings
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
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