Market Alert - Pre-Market

Futures vs FV: SP +7.11; DJ +50.33; NASDAQ +30.07

The rebound attempt is on. Another massive single day selloff bled into Monday then stocks started to bounce. Now they are set to open higher as the financial stations are calling an all clear and that you should be buying the same stocks that were just sold. The CNBC forehead is saying ignore rotation and go right back into these stocks. Another guest said Dow 30K to 40K. Hey, they both have a lot of money . . . and are talking their book.

Stocks are, however, set to rise after the Plunge Team stepped in to stymie another huge selloff. Blunt the selling again, assuring people that they are still there to buy, then wait for them to show up. They didn't do so the last 5 hours of the session Monday, but the word got out. We will see how much potency the move has, but the same stocks are being talked up huge on the new stations.

That is why we have some plays on some really good patterns in the group. You still have to be concerned that the move is just a relief bounce, i.e. a reflex jump in response to a harsh selloff that then runs out of gas. Of course the last few of these started slow steady recoveries.

With NASDAQ and SOX bouncing off a quasi-50 day MA test, there is some support that this is another setup for a bounce. ALONG WITH SP500, DJ30 and the other NYSE indices holding up very well during the selling, a very important factor.

So, we will look at FB, NTES, BCOR and others in the 'same' group of leaders, but not forgetting about the other sectors that sport great patterns.


OTHER MARKETS
Bonds: 2.225% versus 2.21%. People feeling better about bond yields rising. Makes more sense if things are 'right.'

EUR/USD: 1.1201 vs 1.11965. Dollar weaker

USD/JPY: 110.18 vs 109.97. Dollar stronger here.

Oil: 45.95, -0.14. OPEC production is highest since December. Production cut?

Gold: 1262.00, -6.90


PPI: 0.0 vs 0.0 exp vs 0.5% prior

Core: 0.3% vs 0.2% exp vs 0.4% prior.

Core year/year: 2.1% First time in 3 years core is over 2.1%, the Fed's 'speed limit.'


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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