If you are wondering what effect the firing of an FBI director unexpectedly would have on the markets, you have your answer this morning.
Markets are slightly down except for the Nasdaq which is slightly up.
Now, of course, we have a very small sample size to draw any conclusions and there are a number of other variables in play so I would not look at this except for amusement.
Of note this morning, the metals are up, financials down, Oil up almost 1%.
A premarket that looks to me to have a constructive bias.
My reading list for this morning:
http://www.thetraderisk.com/how-to-position-size-when-swing-trading/
http://www.tradeciety.com/no-you-dont-know-what-drawdown-really-means/
http://ibankcoin.com/flyblog/2017/05/10/trump-back-twitter-morning-talking-comey-mexico/
The last link s a web page that is hosted by Ibankcoin and written by “The Fly”. I cannot recommend his articles highly enough. First and foremost they are entertaining. He primarily covers the markets but always has time to comment on political events with a slightly twisted bent.
If you enjoy dark humor and do not take politics too seriously you will enjoy his work. And every once in awhile he comes up with some stellar market advice. You will not be disappointed:)
I got into the markets yesterday and took some short term swings. I had 3 trades, investing about $50,000 and made $780 in a day. As I explained I am taking a very short leash on these swing trades.
I still have several positions but nothing substantial. Today I will take the same approach as yesterday.
The only thing you need to avoid trading this way is getting in the way of a trend day against you. That is the killer. There are no 100% guarantees figuring out if the day will be a trend day but the best clue I have found is $ADD. Just put that on your screen in real time to track the breadth of the markets.
+400 to -400 it is safe territory. Then anything less than -400 for the long side the risk starts going up. When you get past -1000 you need to put on the brakes and -1500 that is the signal that there is a high probability you are looking at a trend day.
It can be tricky but it is a lot easier with $ADD as a guide.
If you only learn to not buck trend days you will be way ahead of most. And will save a lot of money.
On the home front, the big news is the firing of Comey. I will not give my opinion on the subject except to the extent that it is amazing that the very people that were calling for Comey’s head are now saying how wrong it was to fire him. But of course, that is politics.
Honor, truthfulness, integrity genuineness all are traits that most of our politicians have little of and even more so have no interest in having those traits.
So, expect more lunacy out of DC and the mainstream media. The wolves will be plotting how to best use this to their advantage. But they best move fast as I have a hunch that the swamp draining will start in earnest once a new FBI director is in place.
Our politicians, while they did not see the Comey firing coming, will see what is coming next. And I expect many will lose some sleep from here on out.
In the short run this will not be good for the markets, but in the long run, it should be very positive if successful.
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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