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Monday, March 19, 2018

Market Alert - Pre-Market

Futures vs FV: SP -14.51; DJ -136.51; NASDAQ -79.70

It would appear the indices are not waiting but are getting right to the next move. Over the weekend we discussed the importance of this week for the stock indices and leaders. How they had hit highs on SOX, NASDAQ and reversed, but then held up very well with the sellers leaving Wed/Friday. The Monday after expiration the sellers are back and will gap the indices lower as some leaders are hit.

FB: FAANG was a group that would either go higher or not at this juncture. FB is down 8+ clicks on a report that its user data was harvested by a political consulting firm. The EU is PO'ed among others, and thee are heightened calls for FB to be regulated. FB is not really social media now is it? It is a data collection and data sales company; that is where the money is, not in its intrinsic value as a place where people can communicate about events in their lives. Hello, McFly.


AAPL: Reports that AAPL is developing its own microscreens for production in 3-5 years has some AAPL suppliers lower.


TSLA: GS opines that deliveries will be down and that TSLA will guide lower.


UK: Says it has struck a deal with the EU for the 21 months following actual Brexit, forestalling fears of a cliff dive after Brexit becomes effective.


Tariffs: Supposedly renewed worries about tariffs are on topic as a group of senators beg to let China continue what it is doing to American businesses. Oh, and today is the day that countries can apply for exemptions. So, let those worthy get exemptions, those that are not playing fair not get them.


OTHER MARKETS
Bonds: 2.872% vs 2.844%

EUR/USD: 1.2301 vs 1.2287

USD/JPY: 106.21 vs 106.00

Oil: 62.28, -0.06

Gold: 1311.00, -1.30


The market mindset to start the week is to not look past any issues but to bemoan them, and thus the morning gap lower. Futures are off their morning lows hit just after they opened, but there is hardly what you would call a recovery into the open.

Okay, watch to see if there is any recovery, watch where the indices hold the line. NASDAQ is set to open near the late February peak (7421). That fills the upside gap from two Fridays back and a good litmus test as to the strength of the selling. From a bigger picture perspective, the gap lower after attempting to hold the line last week after the Tuesday reversal is just more indication that the Tuesday reversal is the dominant move last week and it is still dominant.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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