The volatility is getting extremely unbearable if your a medium term swing trader. Another wild day yesterday and now today we have a gap up of a little less than .25% 30 min before the open.
After reading the news last night I would have thought the markets would be down substantially this morning as the new Wikileaks drop hit. It’s amazing to me how the markets have pretty much ignored this aspect of the elections. When they do finally start paying attention look out below. The revelations in the leaked documents threaten to rock America’s foundation and we are still at the beginning of these releases.
Again I have to say I in no way intend to espouse and opinion on politics. I am merely reporting what I feel the news of the day might have on the markets. Political discussion is for another forum. Not here!!!
Each day not the market shifts from bearish bias to bullish bias and we are now at the strong short-term bullish bias now. I will be looking to take some swings today if the market looks like it is setting up for a push higher today. But remember this week is options expiration which tends to be bullish going into Friday morning and then historically weakens throughout the day Friday.
I am long a mean reversion trade into its 3rd day and remarkably the swings have been tame in the stock which might bode well if we get any kind of sustained 3-day move to the upside.
Finally, this is no market to be gambling in. You will get eaten alive! Very disciplined money management is essential. It’s like going from a 10-20 limit hold em game to a 40-80 limit hold em game in L..A. If you’re a poker player you will know exactly what I mean.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. 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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