Market Alert - Pre-Market

Futures vs FV: SP +2.88; DJ +8.55; NASDAQ +6.13

Futures rose very early in the morning and have held a tight, lateral range right up to the bell. Those kind of moves are not very indicative of anything. Trends tell a story of strength or weakness into the open. Flat lining can see bids or sell orders. The market trend is higher so the presumption is upside.

The market is waiting today for Wednesday, as the FOMC starts a 2-day meeting today. 'Experts' say there will be a December rate hike regardless of what the market thinks. I guess that is why they are 'experts.'

We are watching to see if any out of the blue hiccups hit the tape today as was the case early afternoon Monday when sell orders hit, the indices dropped, and NASDAQ actually flipped negative before a recovery. Whether these show up again and if so, at what frequency, gives insight as to any selling strength. We will see. The market has no problem weathering events such as Monday afternoon as long as they do not become the norm.


Housing Starts: -0.8% vs +1.7% expected. Down 2 months straight as a rise in single family could not offset a drop in multifamily housing starts.

Permits: +5.7% versus -0.8% expected. Multifamily jumped, single down. The mix of single versus multi continues to vex experts.

Of course, the storms will 'fix' everything as there must be rebuilding and replacing. Fix those broken windows and all will be well with the market.


Exports, August: +0.6% thanks to increases in industrial supplies.

Imports: +0.6% thanks to rising oil prices. Gee, thanks.


Toys 'r' Us: Files Chapter 11 BR, largest retail BR in US history.


Upgrades: GPS, KORS; CVS; WAG

Downgrades: NKE


OTHER MARKETS
Bonds: 2.222% vs 2.2348%

EUR/USD: 1.1976 vs 1.19677

USD/JPY: 111.43 vs 111.56

Oil: 50.20, +0.29

Gold; 1312.00, +1.20


Futures flat-lined all morning and we will have to see if the sluggish pre-FOMC action finds more bids. Typically the market has risen into the FOMC decision so this afternoon could see bids stronger. Again, however, watching to see if any selling air pockets show up again.

Letting positions continue to work of course and looking at choice big names such as NFLX, BABA, and some very good looking biotechs/drugs. There is also energy to consider as the patterns look enticing -- again.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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