Market Alert - Pre-Market

Futures vs FV: SP +0.35; DJ +18.19; NASDAQ +2.86

Europe was lower but US futures are higher though not screaming upside after the Wednesday surge on top of a surge, occurring on the best volume of the move. As I postulated last night, it sure looks as if money is being thrown at the market by those missing. Also there is talk all over the place of a large bearish trade being unwound and adding fuel to the upside fire.

The economic news is in some cases, mostly dealing with sentiment, astounding.

Yesterday saw NY Empire PMI crush expectations with new orders also surging to 13.5 from 3.1, production to 18.2 from 7.3, workweek 7.1 versus -3.1. Today it is the Philly Fed, posting levels not seen since Reagan, a very good comparison.

Philly Fed, Feb: 43.3 vs 17.5 exp vs 23.6 (already a massive jump)
New orders 43.9
Shipments 37.7
Inventories are down as product is bought faster than made
Employment 13.3 vs 12.8
Average workweek 21.1 versus 6.8 prior

Housing starts, Jan: -2.9%

Permits: -2.7%

Outside economic news, but really it is related to economics, is the White House and the cabinet appointments. WSJ says the intelligence people are withholding information from the President for fear of leaks. How is that their call? He is Commander in Chief elected by the process in place in the US. Again, how can they make that call? When the prior President's staff had their unsecured emails hacked and nothing happened and they are withholding information? If they were doing this to President Obama I would be outraged as much as I am now. It gives credence to the theories that the intelligence community, the 'deep state,' really is in control.

How is this economic? Because the more delay and issues for the administration, the less chance of enacting meaningful tax cuts and regulatory reform. That is the connection, and that is what I am concerned about for the market.


OTHER MARKETS
Bonds: 2.484% vs 2.50% 10 year

EUR/USD: 1.0637 vs 1.06148

USD/JPY: 113.783

Oil: 53.49, +0.38

Gold: 1238.60, +5.60. Continues the rebound off the test.


So, outside of war in the bureaucracy (something a fellow in my undergraduate course predicted over 35 years ago) the market continues to move higher. Again, not as much strength today, but still showing the bias. Worried about all of the contrary indicators but this lukewarm opening does give buyers a shot and we will see if they respond again.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm

PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.

Customer Support: http://investmenthouse.com/contact_us.php