Market Alert - Pre-Market

Futures vs FV: SP +11.49; DJ +94.31; NASDAQ +26.17

Futures are not a morning highs but are in the range higher that started with another upside gap. Stocks are set to add to the big Wednesday gains with DJ30 ready to push to a new all-time high. It would appear that the election of Donald Trump has made buying stocks great again.

Japan: Nikkei +6.7%

Buybacks: Indeed, companies are buying back -- while they can. Cheap to free money is going away as bond rates spike so they are buying now.
MET buying $3B
COP buying $3B

Copper: Surging to a 6 month high. It is all speculation now, but that is what markets do. Market rallies are built with a copper roof, right? Or something like that.

Jobless claims: 254K vs 262K exp vs 265K prior

Earnings Beats: SHAK; KSS; TASR
Misses: MYL (BL); PARTY (BL, TL)


OTHER MARKETS
Bonds: 2.103% versus 2.073% 10 year

EUR/USD: 1.0898 vs 1.0939

USD/JPY: 106.678 vs 105.192

Oil: 44.86, -0.41

Gold: 1272.20, +3.70


Another day with the market set to rally with DJ30 looking square at new highs. SP500 et al will be following. There is talk of new optimism, Reagan-like bull rallies, etc., and a lot of that is on CNBC and not from Joe Kernen.

This is a big move and a lot are chasing it. We will of course buy but try to stock with good patterns and stocks still in a buy zone. The cool thing is, if the 'talk' is correct, this run is not going anywhere, and there will be an opportunity, many, to buy.

That said, the market is pricing in stocks were already accurately priced based on FOMC free money and this new economic growth hope is simply adding onto that. I am skeptical of that as the case. Even Reagan had some tough sledding after his Emergency Economic Recovery Tax Act of 1981 was enacted as the US fell into recession after the terrible 1970's.

Nonetheless, if stocks give good setups and good moves, you have to go with that versus esoteric theories and opinions on what moves markets should make. Thus, we will be looking at UTX and others today, but also looking down the road at getting in on tests with respect to stocks that have surged upside in the initial move.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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