We are an hour before the open and the stock market is slightly down across the board.areMetals and Oil is weak while TLT is positive. Everything else is mixed.
To me, this looks like a slightly negative premarket bias.
I put on a few bottom reversal trades yesterday in KRE and EWY.
These trades are ETFs that have had a substantial decline, have some sort of bottom formation along with an RSI divergence.
I then use the 20 day MA as an entry if other conditions are also met.
The thing about these trades is that they have a tight stop and if they do not produce your out in a very short period of time.
If you’re right you might be in these trades for months.
The % wins to loses are a bit below 50/50 but the gains far outweigh the losses. If your prone to take a quick gain these trades are not for you:)
Not much new on the geopolitical or U.S. political front. The President tried to diffuse the remarks he made at the press conference and most likely was successful in some type of damage control.
My opinion was he did not have to do a thing except explain that after the Bush fiasco in Iraq with his intelligence on WMD he decided to independently appraise intelligence and not repeat the mistakes of the past.
I wonder if they thought of that approach. Seems pretty obvious to me. Afterall, its pretty much the same neocons that are screaming about the conference that bought the WMD intelligence.
But that is why I handicap sports and trade stocks rather than advising Presidents:)
With everything diffused now the market will be free to operate without the news risk at least for a short time. But I assure you something else will cause hysteria within a short time. That’s the times we are in.
NFLX made quite a rebound yesterday, down almost 15% to close off only 5%. I have a friend that caught the bottom almost perfectly with options and made a bundle. I stayed away from the trade:(
My advice for the day is to never forget what is driving this market. Try to tune out the noise. Interest rates are still low, Tax cuts are kicking in with more tax cuts on the horizon, affordable health care plans are coming out in September, unemployment is low across the board hitting record lows for minorities, and the economy is booming.
That is no small thing and should propel this market much higher absent political news or a full-fledged trade war.
I suggested yesterday the market looked like it might be at a turning point but the rally changed that completely.
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