Quite a reversal on Wednesday. It took everyone including me by surprise. Usually, when you get a day like this it is best to tur off the computer and either go for a swim or whatever you enjoy doing.
As the temptation will be to panic and start selling. On occasion, that will turn out to be a good strategy. But more often than not it will cost you dearly as a reversal like yesterday is usually a knee jerk reaction that gets correct very fast.
Already, this morning, I have several stocks that took a hit up over 5% this morning in premarket.
The big news today is what the Republicans are going to do on Gorsuch. My take on this is if they do not use the Reid Rule that markets will tank like a rock. It will show the inability of the Republicans to govern.
I know the argument about Garland that the Democrats are using. However, the argument is being used because they have nothing else. The rule has always been outgoing Presidents never get to appoint a Supreme Court position. NEVER. Now sometimes, or once in awhile but never.
One need only goes back to some of the Democrats that are pushing the Garland argument to look at their position when the shoe was on the other foot.
So it is clear that for the Republicans to show they can govern after the health care debacle, they have to use the Reid Rule.
The way it looks now is that they will. And we may get a rally when they do. But if anything goes astray, like several Never Trumpers throwing their hat in with the Democrats this market will drop like a rock. As it will not bode well for the debt ceiling battle coming up.
Today depending on how things look the first 15 min I might take a few BO trades if they develop. If we get a continuation to the downside today I will most likely add to my position long the SPY via SSO. I only have so far a 1/4 position Long.
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
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