8:00 Update
I received a number of emails asking why I did not list my morning reading. One never knows what readers are looking for but let me get back to it:
Retail Stocks Are Now Hitting End of World Dystopian Oversold Levels
Minisode 10: Bankers Turning Bearish & Passive Investing Becomes Commonplace
7 Risk Management Tips That Will Immediately Transform Your Trading
Despite the insanity, in the U.S. the markets so far are ignoring it and gaping up today. It astonishes me that the insanity between the executive branch, congress, and the media is not taking its toll on the markets.
As each day goes by the rhetoric, leaks, and insinuations against the chief executive increase. Not only on a governing level but at the most primitive personal level.
So much for the respect for the office argument!
The end result will be now as I see it is that nothing will get done. Gridlock from here on out. Health care reform and tax changes are off the table now.
3 Republicans are in lockstep with the Democrats in the Senate to block all of Trump’s proposals. On something as a no-brainer as rolling back an Obama regulation, 3 Republican Senators voted against with the Democrats.
That also means no FBI director unless Trump gives in and goes with Garland, an Obama appointee for the Supreme Court.
Many in the Republican party feel that this will appease the Democrats. Myself I have serious doubts about that strategy. And anyway I doubt Trump will appoint Garland. As I see it, it will most likely be Kelly or Corbyn.
This will cause another outcry from our politicians. The end result is going to be that the Republicans will cave and they will most likely get a special prosecutor. Or at the outside, impeachment proceeding will be started.
I am not sure what the makeup of the house is that would allow that to happen but Ryan, considering his response to the leak about Classified info given to the Russians, will be very open to about anything at this point.
So it will hinge on the real conservatives in the House, and at this time I doubt they will abandon the President.
But the markets cannot withstand this insanity much longer.
That is my opinion and it’s as logical and straightforward as you can get. The problem is the markets do not always follow the logic you come up with. In addition, the timing is another thing.
And of course, in the backdrop, the fed wants to raise rates in this insanity.
Honestly “House of Cards” is going to be very boring compared to what is going on now in the U.S:)
I am sticking with my game plan to sticking with very short term swing trades.
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
