The roller coaster ride continues with the market slightly up today premarket.
Of note, Oil down, metals down, financials up and TLT down again, finally biotech up.
Overall looks like a positive bias for the markets.
Yesterday’s drop leaves the markets short term oversold and I will be looking for a trade early to try to take advantage of it.
I have one stock in mind right now as there were few setups that looked good. But this one looks very good right now. The stock I will be watching early is RAI. Ideally, I like to get into these on a red to green open. But the stock is gapping up .37%.
Depending on what $ADD looks like after the open will help me decide on a breakout trade or wait for a pullback before entering.
In addition, a gap and go look like a reasonable trade on the ES. The conditions look pretty good for that trade on the open if it triggers. I have several gap and go systems that I enter on a discretionary basis.
Today is a day that I will take the trade if it triggers.
The news today is the g20 and Trumps first meeting with Putin. Of course, the Democrats and Never Trumpers are insisting Trump confront Putin with DNC hacking. Not that they would have done that in Trump’s position but it soundbites well and they know that Trump will not do that.
After all, Syria and N. Korea seem like more pressing topics as opposed to something that governments do every year all over the world. Wasn’t it Obama that interfered with the Israeli elections and in addition Brexit and Macon in France?
But, one thing you can say about the Democrats and never trumpers is that they are persistent. For them, the stakes are high as they are all in on the globalist agenda. There is a lot of money to be won or lost on who succeeds. The hell with the American People, our politicians have bigger fish to fry. And who knows they hit the American dream of politicians where they get $500,000 for a 1-hour speech!
I am a little off target from stocks on this but it all comes down to the atmosphere that the markets are in right now. It’s a very toxic environment, as toxic as I can ever remember. Even the potential massacre of GOP congressmen has not slowed up the rhetoric. If anything, it has increased the toxic rhetoric.
You have to ask yourself. Is this the time to be fully invested in the stock market? I think not. This bull is long in the tooth even in a normal environment. But with the Fed for whatever reason in tightening mode and the world and U.S. on fire with the potential for spontaneous combustion at any time having my assets in the markets right now is a high-risk proposition.
Before you go out and divest of all your stocks remember this is just one person’s opinion. Opinions on the markets are a dime a dozen. You need to be able to do your own analysis and own decisions if you’re going to actively trade your investments.
To do that requires not only a solid method of investment picking but additionally a solid concept of how the world and U.S politics can affect the markets.
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