The Trump rally continues,except for tech stocks. But I anticipate that sector catching up soon. One thing to watch for is the Nasdaq over taking the SPY on the Weekly charts. That is one of the all clear signals I look at for smooth sailing ahead.
I am long a basket of stock and looking to get longer. I will be actively taking breakout trades when they trigger on select stocks with the idea of holding them until they trigger short by my rules. The days of day trading breakouts for now is over.
On the home front the high anxiety of the election is over. However the constant pounding the press gave Trump most likely will not stop and even though the house and senate are now republican controlled I have a feeling that Trump will not have an easy road getting consensus for what he has planned.
The Democrats so far have acted like there was never an election, while the Never Trumpers while appearing to be conciliatory will be looking to knife trump every chance he gets. So do not expect a big bunch of friends getting together to determine policy. It isn’t going to happen. There will be no honeymoon I am afraid this time around. Lets see how close I get:)
Priebus however as the pick for chief of staff might lessen the damage nevertrumpers can do. I see Priebus as a real friend of Trump who can be counted on when the chips are down. And of course so does Trump. So it will be very interesting to watch the dynamics play out. I am sure Julius Caesar was saying that also!
On the Geopolitical front I do not expect much of a honeymoon there also. Things have settled down for now but there are too many issues festering to expect Trump to jump in and wave a wand and resolve them. The complexity of what he will have to deal with and the sheer number of hot spots will test his presidency. And the mainstream media will pound him at every step with little or no mercy.
But we also have two months of Obama’s term left. I am sure he has unresolved issues that he needs to deal with. How he deals with them will have an effect on the markets. I will comment on them as they come along. But the first one that is around the corner is the debt ceiling. That was the gold mind for traders a few years ago where all you had to do was buy at the dip caused buy our politicians posturing on the debt ceiling and then buy at the last minute knowing they would cave. Almost as good as insider trading:)
So the debt ceiling is the only item up right now that is in play. Congress is back today and that is one of the first things they need to deal with. My guess is the Republicans cave without a fight trying to weather the next two months without a major fight with the President.
So there you have it my morning random thoughts. One final comment, the rioting that is occurring around the country is a direct reflection of how bad the division in our country has become. Its the politicians jobs on both sides to make sure the Country never becomes this divided. If your in the wrong place at the wrong time now here in the U.S. you have problems. Hopefully with the change in leadership after a year or so this will stop. This idea of boycotting and firing employees who have different political opinions is not the way democracy is supposed to work. It will destroy our markets if it is allowed to continue.
If you want to follow some of my trades along with my thoughts typically given after the open you can go to @rickjswings. 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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