After a monster rally yesterday the markets are off about 1/3% before the open.
Of note financials getting hammered, Metals and TLT up, oil down.
Overall a negative bias an hour before the open.
I exited 2 mean reversion trades yesterday NFLX for a nice gain and AIG for break even. I exited AIG as they were off a bit with the market up big. Not a good sign.
I still have AGN and it is so oversold I am sticking with the method.
Today it will all depend on the breadth early in the trading. If it gives any hint at a trend day down I will not be trading swings to the long side.
On the U.S. political front, Trump had his rally last night. No violence, so that was the good news. The bad news is by the President essentially calling out McCain and Flake it assures no harmony with most in Congress.
In addition, the news is Trump and McConnell are not speaking. So, what then is going to happen to Trump’s agenda.
I view the above as a non-issue however as Flake, Mc Connell and McCain are going to be thorns in Trump’s side no matter what he does. It’s like saying the main stream media will take it easy on Trump if he is nice to them.
Not a chance. So the effect of Trump’s statements about the media and some of Congress are just noise. What it does, however, bring the split out in the open.
I suspect that is part of the reason we are off this morning is the split that is very open now between the President and Congress and also Trump’s statement that he will shut down the government if the wall is not in the budget. I doubt he is bluffing on this one.
Another warning sign is the following ad I saw this morning:
So you can now use your credit card to support a margin account! What could go wrong:)
On the political odds front, there have been a few changes. I will update when I post in my handicapping section of the site.
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
