The market recovery is on its way. Day trading makes a profit scalping on large volume moves. Buying call options has worked out as stocks have lifted higher. Now what? We have one party running the White House and both houses of congress so things should go smoothly, right? Wrong. It is politics as usual. So how can you play the politics to make a profit day trading?

Every elected official has his or her own state, district, and agenda. To get what he or she wants the politician (read congressperson or senator) needs to bargain and for that they need bargaining chips.

A case in point that relates to market recovery, politics, and day trading is the set of three free trade agreements awaiting approval by the US senate. We know that shutting off world trade caused the Great Depression and that we need to stimulate world trade to hasten the recovery. Panama, the first treaty up for ratification, is no great threat to US labor, as they have no industrial base. However, they do buy a lot of US products. So, it is a shoe in for confirmation, right? Wrong. US labor and its supporters are opposing it. Regulators have picked up on the desire for banking treaties and greater transparency. Everyone wants their bit in order to support a treaty that would likely gain US jobs.

How do you trade this? Caterpillar supports the treaty. After NAFTA Caterpillar’s exports of heavy equipment to Mexico and Canada quadrupled. The more than $5 billion USD Panama Canal Expansion still needs lots of heavy equipment. If the treaty shows signs of passing Caterpillar will edge up a bit and if it shows signs of being buried, like now, it will drop at bit.

This goes back to following the news while you are day trading. Politics plays out not only on the floor of the House and Senate but on the news and with the talking heads. Market recovery going forward or not you can make money day trading or options trading by watching the politics play out on any number of issues. Just look to see who wants what, and needs to barter votes to get it.

Obama wants to revamp the health care payment. People who are on the fence on this one can be convinced but will want their pork barrel project pushed through in payment for their vote. This is the politics of roads and bridges in every home district. Pause ever so briefly in your day trading as a Senator or key member of the House talks to the press. Watch the economic and market recovery picture as seen from Detroit or Dallas and you will be day trading where the action is next.

Day trading feeds off public sentiment and herd psychology. Stay focused and in touch with your own day trading plan as the politics of market recovery meets the usual politics of the day.

Green stocks will probably still do well during the market recovery as they benefit from stimulus money but day trading the news will help you know which company, in which state, will gain based upon who plays their cards right in congressional politics.

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