Market Alert - Pre-Market

Futures vs FV: SP +14.79; DJ _140.52; NASDAQ +52.40

Futures started higher, rallied, but have faded some the past hour. More of the same? Likely. Some volatility, closing with a consolidation session. BUT . . . the key is the indices are thus far not giving in and rolling right back over, but working on some very decent consolidation action. A weak market would have rolled back over; thus far this one is hanging in. That keeps the door open for another upside leg in the relief rally, and an outside shot at just blowing off the prior low and not coming back. Doesn't make it a certainty, but it is a possibility given the stickiness of the initial bounce.

MA: GIS buying BUFF, the natural pet food company. All of that money the huge companies made in the faux economy is being used to buy up the competition to keep the big boys in charge.


China: It's own AIG moment? Takes over Anbang Insurance company and arrests CEO for financial crimes.


Fed: LOTS of Fed speak today. Mester (Cleveland); George (Kansas City); Dudley (New York); Rosengren (Boston), Williams (San Fran) are all speaking today.


Earnings beats: HPE; RRBG; WING; INTU (but low guidance); FSLR; HLF


Treasury Secretary Mnuchin: More indications he understands economics in his statement that there is no link between rising wages and inflation. He gets it. Many of the Phillips Curve followers on mainstream websites and 'news' outlets are saying he is wrong, citing their theory versus historical facts. Facts are very tough to beat. There was a saying in the law when I litigated: If you have good facts, argue the facts. If you have bad facts, argue the law. One is true in itself, the other is made up. There you go.


OTHER MARKETS
Bonds: 2.89% vs 2.934%

EUR/USD: 1.22J96 vs 1.2325. Dollar rebounds

USD/JPY: 106.77 vs 106.85

Oil: 62.67, -0.10

Gold: 1332.00, -0.70


Expecting some more back and forth. The key of course is whether the consolidation continues holding over into next week. Still waiting for the break up or down, but the longer a good consolidation holds with no reason to sell, the better the odds for a bounce, even if just an extension of the relief move.
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