Market Alert - Pre-Market

Futures vs FV: SP +4.02; DJ +27.76; NASDAQ +9.09

The Dow 20K talk has died down as once again the Dow is set to open below 20K. Perhaps when no one is looking the water will boil?

If you look at a chart of SP futures this morning they look negative. It is trading post-dividend, however, and the price reflects that. Adjusted, futures are up.

Quad expiration. In theory there should be volatility but volatility has died off on expiration even with HTF trading as the price matching is much better . . . when it works.

Money Flows: $21B into equities but $31B into ETF's, meaning $10B left active funds. The market is advancing toward monolithic pricing and mediocrity.

China: Over the past 12 months has sold over $400B in US Treasuries.
China halted bond futures trading Thursday as the selling was severe. Today it could not meet its quota on a bond auction. Yes all is well in China as people are snapping up those bonds. Yeah right, as citizens look everywhere on earth but China to put their money.

Housing Starts, Nov: -18.7% vs +27.4% October. Big swings.

Permits: -4.7%

Earnings beats: JBL, ADBE
Misses: ORCL (TL)
Warnings: HON on current quarter, 2017

Russia: Obama says US will 'take action.' The President emerges from wherever he has been for over a month and wants to mix it up with Russia as his last act.


OTHER MARKETS
Bonds: 2.575 vs 2.59% 10 year

EUR/USD: 1.0436 vs 1.4015

USD/JPY: 118.15 vs 118.257

51.16, +0.26

Gold: 1135.40, +5.60


Futures are fading ahead of the bell. Again, the large cap indices looked tired Thursday but SOX, RUTX, SP400 showed live and that shows up in some stock patterns. We will see how the bids respond to those patterns. Yes it is Friday, but we have found some good entries on Fridays of late.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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