It looks like the market liked what it heard last night as we are gapping up almost 3/4% 45 min before the open.
Of note, IWM +1.12%,GS +1.91%, IBB +.96% , USO +.44% and GLD off almost 1%.
This morning has all the makings of a continuation to the upside. I added a few longs yesterday and was stopped out of one position.
This morning I most likely will be cautious as large gap ups are not the best environment to be putting on swing trades.
As far as headwinds, they have not changed, rate hikes, EU troubles, Mideast, career politicians with special interests driving them.
It will be an uphill battle in Congress and I have my doubts whether much is going to get approved by Congress. Between the special interests and the politicians that will do whatever it takes to undermine this administration, there will be plenty of headwinds in the markets.
Once reality sets in I expect we will either see the end of this bull or at the very least get a significant correction. We will see.
I will be trading today but lightly. I did share a trade yesterday on XME at 32.45. It’s not quite a mean reversion trade but a few of the systems I followed triggered a long on the trade. Typically these system trades last anywhere from 1 to 5 days.