Politically Charged Weekend

As we head into the uncertainty of a politically charged weekend its easy to become frustrated when we experience overnight reversals such as the one we’re likely to experience this morning.  Yes it frustrating but we should also be very grateful for the fantastic profits this weeks rally provided.  We saw new record highs in two indexes with the other two finally found the energy to break through key resistance levels.  All and all a really good week of trading.

With the 2-day G7 meeting about to begin in the midst of trade negotiations, it’s not a big surprise that the market is a bit apprehensive ahead of the weekend.  Directly after the G7 meeting, the president travels to Singapore for the North Korean summit.  Plan your risk carefully as we head into the weekend.

On the Calendar

We have a very light day on Friday’s Economic Calendar with no expected market-moving reports.  At 10:00 AM is the Wholesale Trade report, and the Baker-Hughes Rig Count is at 1:00 PM closing the calendar day.

The Earnings Calendar is also light today with only 13 companies reporting earnings today with AMED being one of the most notable after the bell.

Action Plan

We closed the day yesterday with some clues that the current market rally could be running out steam.  The candle patterns left behind suggest a little caution that a consolidation or market pullback could soon begin.  Unfortunately, caution seems to have flown directly into a TweetStorm as France and the US square off ahead of the G7 meeting in Canada.

As I have mentioned before, political uncertainty creates one of the most challenging environments for traders.  With the G7 meeting, this weekend followed directly by the US-North Korean summit; there is plenty of political uncertainty facing the market ahead of the weekend.  Currently, the Dow Futures are suggesting a gap down of more than 100 points.  Protect your profits and plan your risk carefully as we head into the weekend.

Trade Wisley,

Doug