Big morning this morning for news as the special counsel has announced an indictment against Manafort and his business advisor. The question is what if anything will this do to the stock market.
I doubt this clears the air as to who the focus is on this investigation. Only Manafort? Podesta? Trump? or someone else.
Things should get a little clearer this week but what is certain is the political spin will be completely wrong. I would look to Circa news for some unbiased news. Very hard to predict how this is going to go.
But rest assured if it swings toward Trump this market is going to nosedive, or should I say free fall. The good news its this news that creates short-term opportunity in the markets as the overreactions on the upside and downside is where you can make your money on short-term trading.
Right now the markets are down about a 1/4 % with the Nasdaq hovering around even. They barely moved when the news came out.
Of note, Financials, dollar, metals are down. TLT is positive. Not a very positive bias for the markets this morning.
I exited two bottom reversal trades on Friday for small losses. Both Weat and Corn. I entered a bottom reversal trade in JO. I am still holding UUP. For mean reversion, I have HAL and XNCR. Hal will be exited today. The strong move up on Friday triggered the next day sell signal.
Today its more of the same, watch the breadth and look for very short-term opportunities.
And if your using the news for investment opportunities try to ignore the political spin on both sides as it all will be wrong. It will only distract you from your trading.
I, of course, have my opinion as to how this is going to go, and when and if a line is put out I will give you an idea of where I believe the value is.
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