The stock market is hovering around the 0 line with the exception of IWM which is off about 1/5%.
Of note, Metals, financials, are off, while IBB and oil are slightly positive.
Looks like a negative bias to me an hour before the open.
I could say we are due for a pullback, but people have been predicting that for some time. When they said price was king, you can understand what they meant.
You can have all the indicators you want, but if price does not confirm then you have what you are experiencing now.
I want to give a warning here for the markets. This is only for the next 7 to 10 days.
It’s not about DACA although that has the potential to be market moving. It’s about the IG report coming out on the 15th.
From all accounts, this report is extremely damaging to the upper echelons of the FBI and DOJ during the previous administration. In addition, from all accounts it’s extremely damaging to certain members of the previous administration.
Now I say from all accounts, I mean what the general consensus is as to what is coming on the 15th.
There is a very high probability that this report will trigger at the very least: 1 firings 2. a new special counsel 3. massive retaliation by the mainstream media. 4. Massive spin by the parties affected by the report.
And if this is not enough there is a high probability of leaks coming out prior to the report to attempt to minimize the findings of the report. The leaks could be far more significant than what we have seen to date.
In addition, there is also a lower probability that you may see some action by the special counsel prior to the report coming out. This could be by way of an indictment of someone close to the President or even a finding the President obstructed justice.
In other words, we are in a very dangerous time the next 10 days not only because of what the IG report might contain but also because of how the parties will react both prior and after the report.
The various parties to what we are seeing unfold in the chaotic political environment in the U.S. have raised the stakes so high, that nothing is beyond the imagination as to what might occur.
I will leave it at that. And also I am not indicating in any way the pros or cons of what might occur. Only how it has the potential to completely disrupt the markets.
If you have a large position in the markets you want to keep a watch on these developments. It’s probably the most significant events that have come around in a very long time.
Any news that comes out that has the potential to disrupt this presidency will send the markets in freefall. We saw a hint of that when CNN misreported an incident a few weeks ago that sent the markets in a 300 pt fall in about 15 min.
Also, this is my opinion based on what I am seeing. I, of course, could be wrong. My perceptions could be off. But I only report what my observations and logic tell me:)
Back to the markets today. I am still long GLD. I exited XNCR on Friday as it had hit multiple resistance areas and also showed a high volume spike. That looked like a good time to exit. It was sold at very close to break even.
GLD is looking very good. It’s been a position I have had for some time now. Its a system trade and Its one of the few that I blindly follow.
I will update with any trades on my twitter feed @rickjswings.
I will not be around live this morning on the open as I have a few things I have to get done. But you can message me on skype. My username there is riccja.
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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