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Monday, September 18, 2017

Market Alert - Pre-Market

Futures vs FV: SP +2.97; DJ +42.64; NADSAQ +7.75

World stocks are up and US futures are following (or is it the other way around?). US futures started quite high, rallied, but have backed off from the highs the past 3.5 hours.

A bit different from the low to high moves last week, but hardly a barn burner out of the open as it was the prior Monday with that big 'whew' gap and rally that broke the indices out and set them on the path to the new highs last week for SP500, DJ30, and another one by NASDAQ. SOX is knocking on the door of a new post-2008 high. RUTX, SP400 have good setups to move higher.

The news flow is rather light in terms of economics thus far with the big event supposedly the FOMC meeting this week. Wednesday is the announcement and also a Yellen presser. The main issue for this meeting is the balance sheet taper/reduction. Most believe December is the more likely timing point for that move given the hurricanes. Of course, there is always the simple Fed resistance to do anything to change its policy, tight or loose, until something happens.


M&A: Northrup to buy OA (rocket maker)


Analysts: NVDA upgraded, CAT upgraded, BRKS downgraded to hold


Bitcoin: China taking actions to totally restrict its trading in that country.


FB: More questions about how many ads to Russians, how much it turned over to prosecutor versus Congress (do you ever get the feeling Congress is just a doormat for some people while the rest of us are saddled with its mistakes, e.g. ACA?).


World News:
UN: Trump, Haley pay a visit this week, give speeches.

Hurricane Maria close on the path of Irma, Jose is expected to bring some stormy weather to East Coast.

NKorea: US holds mock bombing drills with B1-B and F-35 planes.


OTHER MARKETS
Bonds: 2.213% vs 2.201%. Bonds off again as the pullback continues ahead of this week's FOMC meeting.

EUR/USD: 1.1961 vs 1.1943

USD/JPY: 111.41 vs 110.846. Making more upside against the yen as the rebound continues with some good strength.

Oil: 49.60, -0.29

Gold: 1315.60, -9.60


Futures holding gains, moving up some toward the open. Again, after the low to high so-so moves last week (outside of SOX), an upside open is something of a novelty. Raises the question whether the indices can actually hold an early move. Looking for SOX new high, NASDAQ to make its own all-time closing high, and for RUTX, SP400 to continue upside to join the rest.

That still means there are good stocks in buy position, and while this move is in the new high range and the algos can enter at any time, we will look at the really good setups.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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