Market Alert - Pre-Market

Futures vs FV: SP +1.32; DJ -6.89; NASDAQ -6.89

Quiet futures trade perhaps belies expiration and a more volatile session. That said, Thursday was a gap lower by the indices to test the 50 day MA's recently broken through. Perhaps that was the volatility? Hmm.

More earnings, some company specific non-earnings news, Trump. Those dominate the morning headlines.

Trump: Last night it was reported that Trump is now not a Mueller target either in the Russia hoax or the Cohen/Porn star investigation. Is this what we are down to? Russia supposedly influencing our elections (as if it NEVER tried to do that in the Cold War, etc.) and whether a porn star was paid to keep quiet years and years ago? I guess so. Every side is after the other sides with investigators, criminal referrals, records subpoenas, ignored and otherwise. And still we have to make money in the market. But, I digress.

OPEC: Trump tweet states oil prices are held artificially high by OPEC and that is unacceptable. Well okay then. We don't like high oil prices. This of course comes on the heels of a report Thursday that Saudi Arabia had no problem with $80-$100/bbl oil. Of course it doesn't. Its primary resource at a higher price. Duh. Too high, however, and you get cut backs. Apparently SArabia feels the $80-100 level will not result in cutbacks. Perhaps the new crown prince is just operating another type of shakedown as he did with those imprisoned in the Ritz Carlton.


AAPL: Even more anlaysts are saying iPhone sales will be less than the lowered expectations they already have.


WFC: Reports are it could face a $1B fine. As good as a perp walk?

Earnings: GE doesn't miss. But who cares? WMT (TL miss)


OTHER MARKET
Bonds: 2.917% versus 2.914%

EUR/USD: 1.2301 vs 1.2344

USD/JPY: 107.61 vs 107.39

Oil: 67.95, -0.38. Giving back some that it gained Thursday but still a breakout.

Gold: 1343.20, -5.60


Futures are off the 7:00ET highs, and we will see how they hang in, but the action this morning is rather muted. Thursday, however, saw futures fade into the open. Does not look as if this will get that ugly, but it is expiration and volatility can result.

Not planning on many new entries but will see how some of those testing good moves react, e.g. FSCT, VMW, XON. Likely keep testing today and even if not, entering today is not generating a lot of enthusiasm around here, at least not yet.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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