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Wednesday, November 1, 2017

Market Alert - Pre-Market

Futures vs FV: SP +9.19; DJ +138.7K; NASDAQ +26.44

A new month and futures are skying higher as more money moves in to start the new month. They are adding in favor of the trend, and nothing like money to smooth over any volatility. Can SP500, RUTX overcome their volatility with this money and move on? Looks as if they are going to make a go at it.

Comments are that everything moved up Tuesday. We know that is not true by looking at some former leading sectors and others that are struggling a bit. We also know that breadth was paltry for the gains in the growth areas that include RUTX. Watching breadth today to see if that spreads out more.


Taxes: House delays its bill a day. More asinine comments coming out that the corporate tax may be sunset. Seriously? Cuomo in New York was on Fox Business this morning spouting the same old dogma about taxes that you hear every time they are broached. These people truly have no grasp of economics, or if they do, they don't care. They just want to be elected again and again and again. Same for the other side. If they were smart they would have offered a plan that was less susceptible to the same old dogma, the one I suggested over two months ago that would cut off the 'tax cut for the rich!' war cries of the democrats. But, no, I am convinced all in DC suffer chronic stupidity brought on by their distorted view of the world from DC as well as the lust for control.


ADP: 235K vs 215K vs 110K (from 135K). Highest since March with a big rebound in . . . construction post-storms. Duh.


ISM at 10ET, FOMC at 2ET


WMT: offering 3x more items online for holidays.


Earnings beats: EL; CLX; GNRC; AGN (BL); GRMN; CHKP; X

Misses: TRI (TL); DDD (suffering TB, TL and BL); EA (TL)


Auto Sales: Snap back from storm in numbers and prices. F 6.1% but Fiat/Chrysler -13.2%.


OTHER MARKETS
Bonds: 2.383% vs 2.378% 10 year. Off a bit pre-Fed.

EUR/USD: 1.1611. Dollar rising pre-Fed as euro falls again

USD/JPY: 114.15. Dollar rising here as well, continuing renewed strength.

Oil: 54.84, +0.46. Closing in on the 54.9 - 55.00 resistance. Funny, the guy on CNBC who swears oil was rolling over a week ago because it had to at 52ish is not even mentioning oil. Nor do the colleagues who would not dare mention it.

Gold: 1276.30, +5.50


Futures have held the gap higher all morning, now just a bit off session highs. It is one of those locked upside since futures started trading mornings as the new money is pushed in. No doubt the market surges, but will it hold? Well, the trend is straight up so you would presume it would. We will see what entries we get.


Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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