Market Alert - Pre-Market

Futures vs FV: SP +12.12; +DJ 108.81; NASDAQ +57.41

Stocks are set to rebound from the Monday mauling though the indices did bounce off those lows, in some cases key lows, to end that session. Would have been nice to see a sharp selloff at the open, but once again, as seen several times in the attempt to hold the line, that really nasty extra flush to start a session is not happening.

Of course speculation runs rampant if there is a further test or if that was the bottom. As noted last night, this is still a work in progress, and thus any moves are not yet trend moves and plays on them are more aggressive.

You see some names such as NVDA, NFLX, AMZN bouncing nicely as some have come in and said this dip is a buy. The question is whether the early move is just a head fake or there is something more sustainable after the Monday reach lower.

An important factor is earnings starting up next week, and with this pre-earnings dip, stocks are well-poised to recover some lost ground in a pre-earnings bounce. That is another historical trend that could pay off. Thus, even though we view this as problematic whether a bottom is in, if some good stocks in good position want to rally several sessions into earnings, we are not adverse to playing them.


News: not a lot.

Upgrades or 'perhaps you should buy' words from analysts: NVDA, AMZN, SLB, HIBB

Downgrades: STZ; GME


Small business hiring at a 7 year low says the headline, but of course it was surging the months before and is taking a pause as it will. You have to just love how the media decides to style a fact, i.e. what to emphasize, what to cleverly leave out to imply something else. Is there any wonder people are just tired of politicians, reporters, and the like? They are now like lawyers were in the eighties.


OTHER MARKETS
Bonds: 1.763 vs 2.734 10 year

EUR/USD: 1.2297 vs 1.2308

USD/JPY: 106.26 vs 105.89

Oil: 63.44, +0.43

Gold: 1342.80, -4.10


Up open, will see how it tests after the gaps higher, see if the sellers take a shot at the upside gap, and then see if there are good entries left after everyone has had their shot, buyers and sellers.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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