Market Alert - Pre-Market

Futures vs FV: SP500 +0.85; DJ +11.02; NASDAQ -3.55

I guess you would call the pre-market trade 'cautious' with futures mixed to start a week that sees a triumvirate of important stories Wednesday (FOMC, US debt ceiling, Dutch election). Futures are off the morning lows; again no real selling attempts.

M&A: INTC buy MBLY. That will shoot our position higher and we will bank some solid gain.

Market Calls: Jim Paulson says there is another 10% upside before the market peaks and rolls over. Something like that. Another one of those 'I can see the future of markets' kind of asinine statements. Hey, it is Monday.

Healthcare: CBO is set to score the House ACA modification bill.

Geopolitics: Trump is meeting with Merkel. Merkel supposedly is going to tell him that tax changes will result in retaliatory actions. Sounds like the art of the deal at work . . .

Trump is also seeing the crown prince of Saudi Arabia. Trump is also said to be planning on hosting China's premiere in Florida in early summer.


OTHER MARKETS
Bonds: 2.591% vs 2.58% 10 year

EUR/USD: 1.0667

USD/JPY: 114.71

Oil: 48.30, -0.19

Gold: 1203.60, -0.19


Again, stocks are a bit pensive to start a week that has important decisions midweek. Thus far no sellers have had the stomach to really try and sell the market. Even when negatives come out regarding the Administration's attempts to get things done, the market doesn't sell, it just tests as it did last week.

And, that is exactly where the market is: testing that post-SOTU rally. The indices are at the point, however, where they need to make a stand and start back up. This week with a lot of important data such as the FOMC rate decision would appear to present the opportunity to make the next move. The market has, however, decided to overlook potential catalysts such as the jobs report. Of course, the jobs report was nothing new; the market wants to price in what is going to happen, and that in the end depends upon what the Trump administration can get pushed through.

We have several nicely positioned upside plays, and will see if they get the bids.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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