It looks like the markets are ecstatic over the U.S. decision to pull out of the Paris Climate Accord.
And they have reason to be as the voluntary agreement, if you want to call it that, was going to be a headwind for the U.S. economy for some time.
But what about the environment? The accord had very little to do with the environment at least the way it was written up. It was just another huge bureaucracy to further penalize the U.S. for the success the country has had over the years economically.
But what about the CEO’s that are opposed to pulling out? Many of these high wealth individuals would not feel the affect personally as the middle class or what is left of it would. In addition, many of the very wealthy were primed to make even more money from this agreement. So no wonder they are a bit upset now that the easy money has evaporated. At least for that agreement.
Finally, that is the risk of entering into agreements by bypassing Congress. There was 0 chance that Congress would have approved this agreement. In addition, if it came down to a vote many of the Democrats that are losing it over Trump withdrawing would have voted against going into the agreement.
Someone once said that this politics is a very complicated business:)
So, we had another shot in the arm for the markets and ultimately the U.S. economy. But, do not get too excited as the Fed is in the wings to put a halt to all this good news. I suspect we will start hearing from the Fed very soon that another rate hike is imminent.
So, what is one to do now that the market just keeps making all time highs? Myself, I am pretty much just watching while picking off a swing trade now and then to the long side.
That is the downside of timing and taking positions. Sometimes you either get it wrong, or you get it right and your timing is off. Nothing easy about being a market prognosticator.
Of note, Oil is plunging, banks are plunging, gold and silver is up and TLT is on the move to the upside.
To me, that means the bias will be to the downside today.
Yesterday morning we were looking at a 3rd scalping technique but I had to leave so we did not catch a trade. I will try it again this morning.
For those of you that have been following it, you can see how entertaining it is trying to figure out the market movements on a very small scale. I hope you have also figured out that for almost everyone except a select few this type of trading is a waste of time:)
The money to be made is in swing trading. Both mean reversion, Breakouts, and False Breakouts.
If you wish to get into trading that is where I would devote my time and energy. It still is a tough learning curve but at least there is a good payoff if you get it right.
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