A big week ahead of us in the stock market with the market making new highs daily. However, there is a breath divergence along two 2 potential market moving news items this week.
1. The Fed:
Odds are we get a hike. But the more important thing the market will be looking at is the tone of the Fed going forward. Any nuance will be studied for clues to the nth degree.
Now if the Fed surprises with no hike it is most likely up and away. If a hike more than likely the mood the market is in right now not much of a dip.
1. Comey to testify on Thursday
Let me start out by saying the only way you’re going to know what he says is to watch it yourself. Reporting nowadays is from slanted to outright false.
And even if you watch it you need to have an understanding of the law in this particular situation. Dershowitz would be the one I would go to for an understanding. And it is really not very complex.
I suspect the hysteria will begin anew for impeachment regardless as to what Comey says. Headlines will be Trump guilty of obstruction of justice on down to Trump put pressure on Comey.
That will be regardless of what Comey testifies to.
So if your trading, expect negative news to come out of this testimony regardless of what the testimony is. There is no question that the strategy has already been set in motion.
Will the market ignore this or will it succumb? That is a tough one. So far except for the 350 down day a few weeks ago the market has been immune to the Trump hysteria.
But regardless it creates enough uncertainty that you do not want to be positioned strongly on either side of the market before he sits down to testify.
Now, If Comey does the unexpected and indicates that nothing occurred out of the ordinary, depending on if the market is open the market should be good for a quick 100 points to the upside.
So should be an interesting day Thursday with perhaps a few surprises.
Of note this morning, markets are unchanged premarket, Oil off 1% Tlt off .6%. Looks neutral to me with very little bias either way premarket.
This morning I will go through my 3rd scalping technique again. As you can see it is a much more disciplined approach to scalping the minis.
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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