After a nice move to the upside on Thursday the markets are gaping higher this morning with percentage increases:
SPY+.11. QQQ +.20, DIA +.23 and IWM +.46
Also of note:
Metals and bonds are down.
My GLD trade is pulling back a bit but still aways from my stop price or an exit signal from the strategy I am using.
My short on JWN is taking heat with JWN +1.54% this morning. I guess the market does not feel there will be any effect from a boycott. Perhaps they should take a look at what happened to Krogers!
This trade has some room as I used Mar 17th options. I will give it some time.
Things are quieting down at home and abroad. Although more abroad.
The 9th Circuits upholding of the Seattle Judges striking down the White House temporary order has far-reaching implications. A lot will depend on how the White House handles it. If they make a misstep here it could be very costly. Dershowitz gave the best advice I have read, saying its time to take the loss and rewrite the temporary ban, but word it properly this time.
The reason this is important to follow is that the travel ban that is overly broad can have implications on the profits of many of the tech companies who hire lower priced workers. If this avenue is cut off for them, their bottom line might be affected.
The tech companies have had a very good run without government interference here in the U.S. It is looking like those days are coming to an end, especially if Trump is given a 2nd term.
Keep that in mind if you’re heavily invested in Tech. It is not an immediate problem but one that could well be very significant several years from now.
Not much else comes to mind this morning. Very boring on the news front or perhaps I am getting used to the dysfunctional nature of our politics these days.
Today I am going to be a bit more cautious as the markets have become overbought. However, any pullbacks again I feel are buying opportunities. Until Trump’s agenda meets serious resistance from either Congress or the Fed I do not see this market turning south.
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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