Congress came back in session and we got 2 monster days on the upside. As they say “the best-laid plans”:)
So what is one to do now after 2 trend days in a row? Myself, I am waiting for a pullback. I do not plan on shooting here although it is tempting.
Seasonally we are setting up for some weak periods. In addition, I am not convinced there will be smooth sailing in Congress for the Debt Ceiling, Health Care, and Tax Reform.
Too many special interests, along with too many Congressmen beholden to them to get anything passed without severe compromises that destroy the benefits of the legislation.
Combine that with the Democrat’s “resistance”, whatever that means and my guess is reality will set in soon for the markets.
It is an interesting term that the left is using “resistance”. It connotes many different things and in fairness, the meaning is different depending what spectrum you are on in the Democratic party or the Never Trumpers in the Republican party for that matter.
But, not matter how you dice it up, they are calling it resistance. A term that does not tend to bode well in a Democracy whereas Clinton put it so well, “Our systems depends on the peaceful transition of power”. But of course, that was when she was believing the polling numbers that gave her a 95% chance of winning the election.
So, as I said, reality is going to set in very soon for the markets as I see it. Whether it is Congress, N. Korea, Russia, Iran or some other unbeknown matter sitting in the weeds, this hysteria to the upside will dispell quickly.
So, if you missed out on this 2-day rally as I have, relax, and do nothing stupid, like chasing the market right here. There will be opportunities down the road and there is not a reason to think you need to make up for lost time.
Those are my thoughts on a Wednesday Morning. Be careful out there:)
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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