Market Alert - Pre-Market

Futures vs FV: SP -1.24; DJ -11.98; NADSAQ +2.18

Futures were up very early, fell to negative, and are moving slightly higher into the opening bell. After gapping lower Monday and recovering with some good holds at the 50 day MA, the momentum is weak. Indeed, 'momentum' is the wrong word; 'slog' comes to mind.

The news is the news, but none of it can generate the interest that a tax plan and/or healthcare reform plan can generate. Trump is set to 'executive order' Obama's executive orders on climate policy. That removes some burdens on businesses and individuals, but it is not a healthcare $1T tax cut then tax reform. Imagine that.

Case/Shiller: +5.9% year/year. Okay, we know pries are up and we knew they were up before this January, ancient history, report.

Wholesale Inventories, Feb advanced: 0.4 vs 0.2 exp vs -0.2 prior (from -0.1%). You would expect inventories to rebound some. Some.

Jobs: F is set to announce investments in 3 US plants. Trump will tweet the 'details.'

More jobs: SAM the bricklaying bot can lay bricks for 85% less than a union mason. Ingenious laser alignment system lets it move down and build a wall, adjusting to any changes in the platform, etc. All he needs is someone to clean the mortar and make sure he has enough bricks.

OTHER MARKETS
Bonds: 2.360% vs 2.376% 10 year. Bonds continue moving up, meaning financials will continue struggling.

EUR/USD: 1.0860 VS 1.0862

USD/JPY: 110.302 vs 110.698. Dollar really dropping in Japan.

Oil: 48.26, +0.56. Trying to bounce.

Gold: 1260.50, +1.70. Bumping at the 200 day MA.


Stocks are 'holding their own' at the flat line. That means buyers and sellers are trying to figure out who makes the first move. Stocks recovered Monday as sellers could not finish the job. Buyers entered, barely, when the sellers let up.

It is almost funny how a modest drop is viewed as the end is near. Perhaps it is; this action is not great but every time the market sets up a fall and starts, the sellers are not there, the selling stops, and a few bids bring it back.

Well, we are going to continue looking at the winning sectors, e.g. bitechs, and even possibly oil and gas for upside action.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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