The week started out like it was going to break with history with the Dow and NASDAQ up nicely an hour or so into trading. But the completion of the market changed and all indexes took a nose dive giving back almost all the gains.
It looks like deja vu today with the market up almost .5% an hour or so before the open. Will it hold this time? I doubt it with the fed reporting tomorrow and the Bank of Japan letting us know their perspective shortly after.
Still not the time to be taking a firm position in the markets. A lot of uncertainty out there combined with seasonal weakness is not a good combination.
I had quite a few swing trades yesterday that I took short gains in. One trade took a loss but over all was a good day for me. I still have my Corn trade on but its very close to getting stopped out. This Corn trade is an excellent risk to reward trade. Typically when it works the gains are large and when it does not the gains are small. Unfortunately these setups do not come along often enough. If they did they would be the only trades I would make for substantial amounts.
My take on the markets today is more weakness ahead of the Fed. Unless of course something is leaked early. That is no small concern in these days of investing. My trading today will be very similar to yesterday but not quite as aggressive unless there are some good setup into the close.
My ideal scenario today is the market tanking hard and closing on the lows. If that happens I am going to look for Mean Reversion trades aggressively to execute just prior to the close. I will take my chances into the Fed tomorrow if that scenario develops.
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
RickJ
RickJ’s Handicapping Picks
