Did Tuesday’s plunge in the Stock Market surprise you? That is what you see in an event driven market!

Markets are gapping up around 1/4% an hour before the open. Of note, Financials, Oil, Biotech all strong and metals mixed. Also, TLT is off a small amount.

To me, this looks like a positive bias heading into the open. The only negative I can see is TLT only slightly down.

I had indicated yesterday I was sticking to a day trade strategy and that is what I did as I found among my basket of stocks for the day Juno that I bought at 41.68 and sold at 42.42. That’s close to a 2% gain in an hour or so:)

Of course, they do not all work out that way but it’s nice to have things go according to plan.

I am going to use the same strategy today if any of my stocks look good to go.

As far as whether yesterday was a blip in this bull market I have a hunch we have not seen the end of this weakness.  After all, you have Congress back in session, DACA, Tax Cuts, N. Korea, Debt Ceiling, a category 5 hurricane bearing down on Florida and the Special Counsel.

As a bonus, you can add in the increasing hostility between Congress and the President. Many in Congress are no longer hiding that their goal is to defeat the President;s agenda.

What could go wrong with this backdrop:)

My view is that this market right now is going to be event driven. But the good news is the reaction to the events will most likely be overdone. And that creates opportunity. That is what I plan on concentrating on, an opportunity created by over reaction to the events of the day.

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

RickJ’s Handicapping Picks

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