Markets are up an hour before the open, except for QQQ which is unchanged.
Of Note, Financials slightly positive, Metals and oil down, as is TLT and IBB.
The markets are in an area where the upside might be limited this week. Historically this is the worst week of the year.
Beware of this, however, as the sample size is rather small. I would not give it much credence.
This is a big week as Yellen most likely will disclose how fast the Fed will work off the U.S. debt on their balance sheet. And also might give some indication of interest rate hikes.
I am still in day trade mode. Event risk is still high. Between N. Korea and our Congress, it could not be any higher.
Feinstein announced the Senate Russia election probe will probably last another 1.5 years! Coincidently that goes into the nov 2018 elections. So I suspect as we get closer to the midterms surrises will be revealed to affect the elections.
Perhaps I am being cynical but I have watch Congress for a long time. Both the Dems and Republicans have forgotten who they represent.
We will get a taste of the distaste for the Republican establishment in Alabama where the establishment candidate Strange goes against Moore.
I have followed that closely in my political odds section on my site: https://www.rickjshandicappingpicks.com/political-odds/
I usually update that 2 to 3 times a week. I first posted my line of Moore over Strange at 4 to 1 Moore when Strange was the favorite.
Now the line is 5 to 2 in favor of Moore. If I was going to wager on the outcome I would still take Moore.
One wildcard in all of this that I did not anticipate was Trump backing the establishment Strange over Moore. And as I understand it Trump is heading to Alabama this week to stump for Strange.
The irony here is Trump the anti-establishment, drain the swamp, is backing Strange. Strange was critical of Trump’s comments after Charlottesville. While Moore is 100% in Trump’s corner.
The only thing I can think of is Trump must have made a deal with McConnell. Nothing else makes sense to me.
Despite that, I still think Moore will win easily. And this will set the stage for the establishment republican getting dumped in the primaries. That means Flake, Heller and the rest are most likely toast.
And even Ryan might get knocked off. We will see:)
One would think that the establishment Republican;s in Congress would come around and work on Trump’s agenda. But I do not see that happening.I see more Trump bashing by his own party and also Tax cuts, health care, infrastructure to make no progress.
Once the market gets wind of this, look out below.
I am pretty much alone on this as most feel tax cuts are a done deal. It should be interesting.
Finally, mid October marks a shift into the most bullish time of the year for the markets. One has to laugh as the markets have gone straight up. The sell in May crowd is pretty sick right now.
I am going to quit rambling for this morning. I will post my opening comments along with any trades on my private twitter feed.
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