Did anyone have fun yesterday:) Even my conservative portfolio took a nice hit.
Before the close, I added a 25% mean reversion trade in SPY via SSO. This is a 2X positive SPY ETF.
1/4 is just the start of the mean reversion trade and I will add If I get some more downside.
In the past, my SPY mean reversion trades have been the best performing of all my trades.
The stock market is bouncing off the lows this morning, TLT is positive .33% but for the time being, TLT is not anything you can draw any inferences from.
Metals are strong while financials and oil are weak.
No idea what today is likely to bring, however, we have hit oversold by almost every measure. Can the stock market go lower? Of course and do not think for an instant it cannot get a lot worse if you are long.
I was around when they downgraded the U.S. financial rating. It was not pretty during that time.
Not much new in the news. The big news is that midterms is rapidly approaching and so is the rhetoric.
The former head law enforcement officer in the U.S. came out with the comment “When they go low, we kick them” That is quite a statement for a former head of the DOJ.
This comes after Hillary has promised no civility until the Democrats win back the house or Senate?
My only question is, what planet are these people on? The ballot box is where you win or lose. In addition, how you do at the ballot box is dependent on your policies, not on how good you are in ginning up the mob.
But, that is where politics is at now in the U.S. and I suspect Rand Paul was correct that this is getting very dangerous at this point.
Aside from the above, it appears that the President is on the warpath against the FED. My recommendation would be to get rid of Powell today. Put someone more in line with Trump’s ideas of growing the economy. Otherwise, we have not seen anything yet for the plunge in the markets.
I will be looking today for a bounce trade and actually have one in mind on the open. I will share that on my private twitter feed @rickjswings
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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