Amazing, the markets are gaping down this morning. A change of pace:) Perhaps we can find some swing trading for this morning.
Of note, Financials strong, Dollar continuing to the upside, while Oil getting pounded TLT down, and metals weak.
What does this mean? Not much to me. If financials stay strong I doubt this market will fall much. So more than likely it’s more of the same.
However, Trump made the comment yesterday, “Its the calm before the storm”. What he has in mind is anyone’s guess.
Here at home, I see the political environment getting worse if that is possible. Congress had a year to investigate the Dossier regarding Trump in Russia. They found nothing, so both the Burr and Warner made the announcement they are turning it over to the special counsel.
I am afraid the U.S. is in for some very turbulent times at home in the near future. Half the population voted for Trump. Many of those are still onboard, committed to his much of his agenda. The question is how will they react to an attempt at his removal.
I see it as a very high probability of a constitutional crisis in the making here.
Its been easy money so far in this bull market. Incredibly easy. But if the markets get spooked by some attempt to indict and remove the President not only is the markets going to tank, but the 63 million that voted for Trump may not react the way the politicians think.
That is the risk going forward as I see it. For once, I hope my predictions are wrong. I would be very wary right now of the event risk that is in this market. That is why I am sticking to short-term swing trading.
Of course, I have been saying that and the markets have gone straight up. I feel like Mark Cuban who said if Trump is elected he was getting rid of all his longs and shorting the market big time. I wonder if he is still short:)
If he is, I can see why he might run for President!
Enough of the doom and gloom as right now its up and away for the markets. I have been long UUP and continue to stay long. It’s a longer-term trade.
I am also looking for a spot to get long GLD for a longer-term trade. So far no signals.
When the market heads up like this my BO list gets shorter as the markets need some kind of flag for my BO setups to appear.
And of course, mean reversion will not come into play without a pullback let alone swing trading.
I will post a few comments after the open and any trades I make
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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