Will Corker and McCain derail the tax bill? How will the stock market react?

Its been awhile but the stock market is off this morning lead by the Nasdaq down almost 3/4%.

Of note, financial are getting hammered, dollar and TLT are down, Metals are positive.

Volatility is back with Japan having a huge swing overnight.

I spent the morning handicapping the NFL so not up on the news this morning. But I suspect the markets are reacting in part to the dysfunction in the Senate.  Nothing is going to change until after the midterms. You have Congressmen that are not running again that are forgoing all appearances of being reasonable.

Corker is top of the list. He will now do whatever he can to tank whatever the White House wants. With a 15% approval rating back home, he does not care to do the peoples business anymore. Then, of course, you have McCain that will be a no vote. So that is 2. If they lose 1 more, the tax bill is dead in the Senate. Like I said, very little chance of a tax bill coming out of the Senate, or anything else that the White House is pushing.

That is what the tax cuts are facing in the Senate. The way it looks the Never Trumpers have no problem tanking the Republican party to rid themselves of Trump. So the dynamics will be very interesting going forward.

We are in the best time of the year for the markets. But how does it get any better:)

In any event today we are looking at a dip. Watch the breadth the first 30 min to see where we are headed. -1400 on $ADD is trend day down territory. That’s when you want to consider jettisoning your short-term longs early.

We had another day trade yesterday with a nice gain. So far I am 6-0 on these day trades. This morning might be a bit difficult to find one but we will see.

I have had several emails requesting that I start commenting daily on the political events of the day. I appreciate the requests, but, I have no desire to dip into the political arena commenting on what is going on and why. Perhaps when the environment gets to where civil discussion is the norm I might reconsider but this is an area too polarized for me to get into it.

I will stick to sports betting and political odds. And of course the stock market:)

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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