Markets are gapping up this morning over .5%. Of note Financials and IBB strong. Metals and TLT getting hammered.
This is very positive premarket. I would be looking at the breadth for a trend day up this morning.
I am still in day trading mode and most likely will be until Mid October when the best seasonality begins for the markets. However, its almost a laugh to say that as the market has been extremely bullish. The sell in May crowd did not fare so well this year:)
We are oversold a bit going into this morning but it would not take much of a rally today to get back to neutral.
The market is due for a pullback but as we have seen this market does not want to go down right now.
So it is sit and wait, that is about all you can do right now unless of course, your 100% invested. Then you are counting your money.
Not much new on the home or world front this morning. The two hurricanes have engulfed the news cycle. I expect however that once that passes it will be back to bashing Trump full time again.
The big issue now is the dreamers. Some in Congress are ready to fast track a new bill (If that is possible in Congress). I suspect at the very least the white house is going to want concessions on the wall, tax cuts and perhaps even the health care again.
So I expect a lot of infighting and accusations to start today. These are all heated topics with no easy answers. The only people that have easy answers are the people pushing their agenda at all costs.
How this all washes out is a mystery to me right now. Usually, I have a good grasp on how these issues will resolve. But I can see a dreamer act with no concessions that Trump will be forced to veto. If however, Congress gives concessions there will be no veto. That is how I see it in a general sense.
The other issue is whether the dreamer act can get through Congress. I would say 50/50 or maybe 60/40 that a bill will get on Trump’s desk anytime soon.
Evidently, I have been wrong about all this political chaos causing the markets to topple. They have ignored it and gone up.
We will see how the markets react when Tax cuts are dead or the Special Counsel comes up with charges against Trump. I do not think you want to be long in the event either of the two occurs.
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
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