Market Alert - Pre-Market

Futures vs FV: SP +6.85; DJ +67.63; NASDAQ +15.11

No economic data this morning but the week is loaded with data to come including Yellen's testimony formerly known as Humphrey-Hawkins.

Trump: Met with Abe over the weekend and made nice, talking joint defense and nothing on the hot button issues. China didn't like it, but China doesn't like anything that is not ignoring everything China is doing.

Trump also meets with Canada's Trudeau today in what should be an interesting meeting. I am reading reports about Canada now dealing with refugees from the US who were refugees to the US. Crossing in the dead of night in the bitter cold.

Oil: Lower to start the week as increases in production are outstripping cuts in production by deals such as the OPEC cuts.

Earnings beats: TEVA; TSEM; FDC

EU: Admits any slowdown from Brexit is not as bad for either side as predicted last year.


OTHER MARKETS
Bonds: 2.443% vs 2.41%

EUR/USD: 1.0624 vs 1.0632

USD/JPY: 113.856 vs 113.205

Oil: 53.06, -0.80. Production gains outpacing production cut agreement

Gold; 1277.10, -8.80. Down as the Trump Trade resurgence continues.


The renewed by the word 'phenomenal' Trump rally continues. Despite the attempts to make the new administration appear as disorganized as many thought it would be, the markets seem to think it has enough going on that it can get tax and regulation reduction passed Congress. Or at least markets want to believe it enough to put some money to work.

As such, futures are on a steady 45 degree incline all morning and are still punching to new pre-market highs heading into the bell. Industrial metals, machinery, materials -- many of the original post-election rally stocks started rallying again on Thursday and look to continue that move.

Keys to watch: Do the chips rejoin the rally? If not, do they hold position or continue to fall more than the Thursday/Friday fade to near support? Do the small caps continue to follow? Do small caps move into a leadership role as an improving economy would suggest?

Also watching stocks such as IP, MET, big oil as those are set up bearish. Are bearish patterns playing out bearish or are they able to find new bids as well. Also an important tell.

We have several new plays. Will see if they give the entry versus just an early pop. The steady rise suggests there is more there than say the early session gap higher that simply holds the gap.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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