Market Alert - Pre-Market

Futures vs FV: SP -7.87; DJ -55.15; NASDA -12.45

A more cautious approach to the start of Q4 as some of the reasons for the Friday rally are not such clear reasons to continue Monday.

DB: Of course this receives a lion's share of the interest. Over the weekend we reported that DB risk was still high even with the excitement of a write down of the DOJ fine by not quite 2/3.

Today there are questions whether there is a deal at all and indeed DB's default risk have moved to record highs. That does not suggest the kind of comfort level in the players with money at risk that the stock markets demonstrated Friday.

Today is PMI day with the US at 10:00ET.
China PMI: 50.4 as expected and prior
EU PMI: 52.6 as expected and prior

Auto sales out today.
TM (Toyota): 1.5%
Others will be released as the day progresses.

TSLA: Announced Q3 deliveries +70% quarter/quarter

M&A: Bass Pro (private) buying CAB for $65/share

GOOG: Looking at its own name on a branded higher end phone to compete with AAPL, Samsung. I used the Moto X and liked its software features such as talking to you when driving, etc. Of course, you are racked in everything you do. You can put tape over the camera similar to the head of the FBI, but if you want to use the features that are the most useful, they all know everything about you.


OTHER MARKETS
Bonds: 1.60% vs 1.60% 10 year

EUR/USD: 1.1238 vs 1.1239

USD/JPY: 101.34 vs 101.32

Oil: 48.57, +0.33

Gold; 1316.20, -0.90


Futures are holding at the session lows hit 20 minutes back. Nothing all that nefarious, just some give back after a Friday that was likely more boisterous than it should have been.

The large cap index patterns are not that great while NASDAQ, SOX are solid. We will see how this split resolves. Again, would much prefer seeing the trend establish itself, up or down, and then play hard. Until then we will take some positions as they arise as some areas are working very well and can still turn profits even in a market that is overall undecided.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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