US stock market waiting for passage of tax reform.....

US stock market is in a holding pattern, till passage of tax reform.

There was no reaction on Friday, when tax reform was being promoted, it is a case of " show me the passage "

In US politics, there has been too many surprises, thus, it is  "wait and see approach "

French election first round on is over and centrist and right wing will square off in final election.

North Korea is still a wild card, one can never tell what could be the next move by either party.

Chinese are showing willingness to exert their influence on North Korea, thus a fuel supply issue in North Korea.

Back to US stock market, it has become extremely narrow and selective.

Financial stocks are not reacting positively to good earnings.

Technology is extremely narrow with strength in FANG and select SOX stocks.

It is tough to navigate a TAPE which is supporting very few stocks.

Earning season is in full swing now and everyone is hoping that good earnings will be rewarded.

IF you have high comfort with your stocks, it is wise to monitor it closely.

Wall Street has given surprises to best of us, thus complacency is not an option.

From the feel of TAPE, it looks like, there is a digestive phase in market.

It may need more time for multiples to go higher, it may shrink in the meantime.

It is highly advisable to play safe and take less risk @ this stage.

Exposure needs to be monitored for risk.

Good luck with your own analysis and comfort level.

BLOG does NOT give buy or sell.

Saleem