Lets start out this morning with some interesting reading:
https://twitter.com/wxyz2010/status/865395436122554368
https://www.seeitmarket.com/sp-500-chart-update-deeper-pullback-underway-16876/
https://pbs.twimg.com/media/DAIkGGgWsAA6BdG.jpg:large
The markets are following through on yesterday’s gains this morning up about 1/4%
Of note Oil and the metals are on the plus side as is the financials.
Overall premarket looks pretty positive for today. I expect the bias to be on the upside today.
The best way to gauge it is to take a look at $ADD on the open and follow it for the first 15 to 30 min. That should give you an idea as to the probability of the type of day you might see ie, range or trend day.
Once you determine that you should use that as a backdrop for your trading. If a trend day, the rule is no trades opposite the trend. Range days you can buy and sell using the RSI and divergences.
Of course, it is more complex than that but just an idea to get you on the right track.
I had a day trade yesterday that never got going. But my overnight trade in BLUE had a 1,000 gain and I exited shortly after the open. Tight leash remember:)
My plan is to find a day trade or two today depending on how the market looks after the first 15 to 30 min. I typically give a heads up on my private twitter feed @rickjswings
The Geopolitical front has quieted down a bit and Trump starts his 8 day trip to the Mideast. While at home everyone and his brother is trying to figure out how to get him out of office.
What did Clinton say? “I am shocked” that anyone would interfere with the peaceful transition of power. Something the U.S. is known for worldwide. A model for the world. It did not take very long for that “shock” to go away.
If you wish to get some perspective on how out of whack things really are two interesting people to read are Allan Dershowitz and Johnathan Turley. Two of the leading constitutional law experts in the U.S. and both happen to be card carrying Democrats.
For us however it is not which opinion you have on Trump but how this insanity will affect the markets. We got a whiff of it this week when the Dow closed off 350 pts. As I said that is a warning shot in case impeachment proceedings gets serious.
I, of course, am open to questions on these subjects in case you have a large amount of money in the markets. Remember, however, my opinions are just that, my opinions. I am not a licensed professional, but a mere citizen like you with 70 years of experience behind me.
So anything I say is merely my thoughts. Anything you decide to do is solely your responsibility. And In case you are uncertain about what I am saying just read my “Must Reading ” section of this site. The caveats apply equally to trading.
I did get an email last night as to when I thought this insanity would end. Unfortunately, the only way to end it is a complete overhaul of Congress. From top to bottom. Or at the very least get laws in place for term limits and prohibitions of politicians taking money from special interests both home and abroad.
Until that is done, nothing is going to change, it is only going to get worse.
In closing this morning one thing you can do is keep an eye on the Fed. If the fed raises rates again in June this market is toast. And Yellen knows it in case you are wondering.
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
