Will there be a special counsel #2 ? What does this mean for the stock market?

Looks like volatility is back for a while in the stock market. The markets just might be catching on to the political chaos in DC.

Every new day is full of surprises. Mostly bad ones. And it is not concentrated on any party.

As I see it we have several things coming up of importance. The debt ceiling, the new fed head, N. Korea, Nov. 4th, special counsel and perhaps a 2nd special counsel, FBI informant testimony.  Did I say several:)

Its a truckload of potential problems the stock market might face. Oh yes, I forgot about tax cuts and now DACA. Looks like Ryan slipped DACA into the budget bill. Ryan is flirting with getting primaried if he stalls this budget.

My guess is more and more volatility as some of the above start coming to a head. And they will, as the stakes are very high now for all the players in DC. They have put themselves into an all or nothing corner. What concerns me is if cornered with no outs, strange things can start to unfold.

Not the time to have all your nest egg in the stock market as I see it. But my timing has been pretty bad since I started preaching doom and gloom:)  And timing is everything when your trading the markets.

This morning the markets are gapping up a bit with IWM leading the way and QQQ lagging. What you want to see is QQQ in front.

Of note, IBB is getting hammered down 1.5%, metals and oil slightly down, TLT slightly positive as is the Dollar.

I am long the uup, weat, and corn. Those are bottom reversal trades. Weat and Corn are on the precipice of being jettisoned, they need an up day today. I am also long a few equities that are underwater at this point.  But that is mean reversion trading.

My plan today is to start looking for a mean reversion trade if we reverse down today. Otherwise, it will all depend on breadth. I will comment on that on my private twitter feed @rickjswings. It’s free.

Also for those that missed it, looks like my odds prediction on Flake losing the primary was spot on. My last post indicated 10 to 1 against and even that might be low. Flake withdrew. Most likely because the odds were closer to 0 of him winning.

Watch Heller and even Ryan now. Establishment Republicans are in for a trouncing in the primaries.

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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