Debt Ceiling Deal and How To Trade It

A deal has been expected. Tread cautiously early and watch for signs of selling. The first hour of trading will be important.

PRE-OPEN MARKET COMMENTS TUESDAY – The S&P 500 is up 25 points before the open. That would be a nice horizontal breakout if it holds. The market has been pricing in a deal so the debt ceiling rally might not have “legs”.  If approved, the deal would raise the debt ceiling for 2 years (beyond the 2024 elections) and that would be market friendly. The market will not have to deal with it next year and we will avoid another fiasco. Less uncertainty is good for the market.

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