The stock market received a nice surprise on Tuesday. After an almost +700 pt two trading day run, a -300 pt down day!
But that is typical anymore. If you were lulled into complacency over the long period of low volatility where the market seemed to go straight up, you’re not alone.
This is what I remember trading to be like:)
This morning the markets are gaping up about 1/3% lead by QQQ. The only thing showing some strength that I look at this morning is financials. So with QQQ leading and financials looking good tells me we have a pretty good premarket bias.
Let’s look at breadth the first 10 min or so. That will give a good clue where we are heading.
Not much on the news front although the boycott talk is getting stronger and stronger. What is remarkable to me is to watch the news media weighing in like they are experts.
The days are long past when the news media reports the news. If you want to see what reporting was like and what was considered controversial you only need to dig out “Broadcast News” with William Hurt.
If you’re in the younger generation you might not even comprehend the issues in the movie. However, if you lived in the Broadcast News era as a prize-winning journalist then, and just woke up out of a coma you would be dismayed at how far journalism has fallen.
When the National Inquirer seems tame compared to what CNN, NBA, and ABC put out every day you have to wonder:)
That is why I stress that you get reliable news if you’re going to base your trading decisions on the news. Its always tough to trade based upon factual news, but to trade on what you get now on most channels is going to put you at an extreme disadvantage.
When I played poker full time I cannot count the number of bets I won from poker players who enjoyed betting political outcomes. It was too easy!
If you keep a clear head, objective mind, with your ideology in check it will go a long way to keeping your trading on an even keel.
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’s Handicapping Picks