Home Stocks Trading Advantage Stocks – Cautious Approach

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The markets sold off aggressively on concerns over details of the tax reform. I had mentioned earlier this week about the possible reaction to the tax reform and clearly the streets were not happy about it. Yet, we managed to bounce off the lows and rally back. All three major markets finished down for the session but all three managed to shave off more than half of the losses on the bounce. It was a strong recovery off the lows and buyers are still piling on in the face of selling. So where does that leave us going forward? Simple answer is buyers remain in control. However, if the details of the tax reform still show a delay in corporate tax cuts, then expect the markets to soften. We could actually see risk off trading and have it sustain. The markets have priced in this cut and essentially overpriced themselves. If there is guidance to an earlier cut and the streets are happy, we will continue to rally strong and then some. I will be cautiously approaching buy entries at the moment. I will also be considering to short plays as possible hedges just in case things do unravel. The markets have needed a sign to take risk off and they may have finally got one.  Open Position: AMP RHT NKE SWKS AAPL FB Stocks to Watch: TWTR CTXS NTAP JBL HLF WFC  JPM MS NFLX WDC DIS SBUX STZ NKE LULU CREE VZ T HOG MON YUM LOW HD LEN TOL FEYE PANW FFIV AKAM

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