The Stock Market is mostly lower this morning lead by the Nasdaq -1/4%.
Of note, TLT -1/4%, Metals mixed, Oil and Biotech strong.
To me, this looks like a positive premarket bias.
In case you are wondering how the premarket bias can be positive but the indexes, for the most part, are down, this bias tends to give an idea of the direction we are heading after the open.
Its far from infallible but it’s not bad:)
One thing we have not heard about for a while is a government shutdown. But it is back in play as the White House is threatening a shutdown unless they get some results on immigration including the wall.
Where this goes is anyone’s guess, but as long as this rhetoric is out there it’s going to be an overhang on the markets.
Another thing to keep in mind is that for the first time in awhile the Nasdaq is not leading the SP500 on a weekly basis. That is a warning sign. Typically the stock market gets most of its gains when the Nasdaq is leading.
On the Special counsel front, there are a few new developments. Remember, these come from the press as opposed to directly from the AG or Special Counsel’s office.
First it reports are that the SC is looking at the President’s tweets as they might relate to Obstruction of Justice. Also, Cohen, the Presidents past Attorney had a phone conversation leaked to the press which it’s not exactly clear what it says.
Despite the above, the President seems to be doubling down on his tweets. At this time he for the first time has personally attacked Mueller and his conflict of interest.
So, this means that the President is not pulling back from his social media strategy. And I doubt the S.C. is going to back away in the least bit. So it appears things are going to be heating up here.
That will add some volatility to the markets when the fireworks start. Who is going to come out on top of this battle remains to be seen? The problem the President has is he, for the most part, is going it alone. Most of Congress is not in his corner, and the AG office appears not to be behind him also.
So it should be interesting to see what rabbit the President is going to pull out of a hat to pull out of this mess.
Today so far looks like a reasonable day to take a few swing trades early. I will post any I take on my private twitter feed @rickjswings. Its free so take a look.
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