Market Alert - Pre-Market

Futures vs FV: SP +0.67; DJ +24.15; NASDAQ -20.12

The Russians are coming? A story over the weekend claims the CIA knows the Russians have spread stories, information, or something to influence US elections. The 'yes they did, no they didn't' back and forth raged all weekend. The effect on the markets? Doesn't seem this is the main issue, by far.

Another Trump tweet is more on the front lines this morning as Trump says the F-35 fighter cost is too damn high and says billions in defense costs will be reduced. LMT and other defense contractors trade notably lower in response.

Bonds: 10 year topped 2.5% earlier in the session for the first time in 2 years. It has since slid back but not much.

Oil: Non-OPEC agreement on production reduction has oil up again, trying to push through that October high that stymied oil on its last rally attempt.

China: Sparring with an "immature" Trump over the one-China 'issue.'

LOTS of market related news, right? The irony in all of this is, after 8 years of Obama and at least a term of Bush operating under executive fiat, people are up in arms about the President-elect tweeting thoughts on what he would like to do without going into how he will do it. You can lower drug prices without dictating them. You can lower the costs of government contracts because, well, the government is a party to the contract.


OTHER MARKETS
Bonds: 2.497% vs 2.471% 10 year. Topped 2.5% earlier in session for the first time in 2 years.

EUR/USD: 1.0609 vs 1.05586

USD/JPY: 115.55 vs 115.20

Oil: 53.57, +2.07

Gold: 1161.80, -0.10


Futures are mixed and softening a bit into the open. Oil's gain is spiking oil stocks again with many set to gap nicely higher on the open. Good for our oil positions and we will have to see if we can get good entries on the others we are looking at as potential buys.

It is Fed week and that might finally play into the action sans more tweets. The market is suffering from its success with many areas extended. We have several good plays that are not, however, and we are watching them and how they hold moves.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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