Market Alert - Pre-Market

Futures vs FV: SP -7.2; DJ -63.56; NASDAQ -14.65

Futures are lower but off the morning lows as US futures are better than Monday and some bottom fishing is ongoing this morning. Thus far not a rip higher, but some feeling around after the futures drop over the long weekend.

Of course NKorea dominates the headlines with the NK's test of an alleged hydrogen bomb, the US UN diplomat saying NK is 'begging for war,' and now NK reportedly prepping for another test. Sitting idle for too long, now the US, China, and Russia snipe at each other instead of handling NK. China has to be motivated to act. Nothing happens diplomatically without China at the table.


M&A: UTX buying COL


Cryptocurrencies: China declares bitcoin and others 'illegal.'


September: It is now September and historically that is the worst month for stock bulls. Does not always hold though with the geopolitical issues there are reasons to just throw up the hands and leave. As for market based reasons, well, the indices are working well. The question is how they are treated once they get to new highs. Anyway, CNBC posted a headline about September starting with the words 'get ready.' Perhaps that is a buy?


Congress: Back in DC today -- for all of 3 weeks -- trying to handle Harvey, tax cuts, etc. That prospect would be funny if not so imperative.


OTHER MARKETS
Bonds: 2.138% vs 2.166% 10 year. Bonds rally back after Friday drop.

EUR/USD: 1.1891 vs 1.19621. Dollar recovers after Korea actions

USD/JPY: 109.32

Oil: 47.89, _0.60

Gold; 1334.80, +4.40


Futures are off the lows as noted, but it is also not a rip back up as noted. Indeed, futures are fading a bit off their recovery highs with about an hour to go ahead of the bell. We will see if they set up a higher low test and continue upside. It is definitely not a complete dump lower.

Bigger picture, NASDAQ is bumping the prior high, and the market has put in new highs, rallied a bit more, then the algorithms have sold to start the cycle anew. Thus, we will see if the first of the week weakness holds reasonably well then catches a bid to continue the move as per the programs.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
______________________________________
Alert Key
http://www.investmenthouse.com/alertkey.htm

PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.

Customer Support: http://investmenthouse.com/contact_us.php