Market Alert - Pre-Market

Futures vs FV: SP -4.03; DJ +9.02; NASDAQ -30.38

Futures were up earlier in the session but hit the skids over the past 2.5 hours. A weekend article critical of GOOG (losing the AI fight to AMZN's Alexa), China trade issues are the lead stories on top of AMAT's weak guidance last night that is impacting chips.


Trade: China says it did not offer a $200B reduction in the trade deficit. Gee, surprise. The Chinese don't want to talk about deals in public. Nothing new there.

On the other hand, China did drop its probe into alleged US Sorghum dumping.

This is the idiocy of our media. They cannot or refuse to see the big picture. Negotiations between nations has changed. The old stodgy behind closed doors that resulted in bad deals is usurped by the 'Art of the Deal' as every nation has now read the Trump books and adjusted negotiation tactics accordingly. Thus you have statements, denials, apparently outlandish positions, etc. Just look at NKorea the past week, China's comments, US comments. Hello, McFly?

What is happening: they are talking, attempting to get deals. Even when Trump says he does not believe a deal will be reached with China, or that NKorea will be 'decimated' if no nuclear deal is reached those are not final statements. They are the negotiating plays.


Not a lot of other hard news. Chips under pressure, GOOG under pressure, other stocks decent. GOOG is important: it is in a good pattern but is looking at 20 clicks lower at the open. Not good as we have a position and it was in good sync with FB, AAPL in nice pullbacks.


OTHER MARKETS
Bonds: 3.091% vs 3.123%. 3% is here, Mr. Burton

EUR/USD: 1.1765 vs 1.1802. Dollar still running

Oil: 71.39, -0.10


Futures are running back to the upside as the open approaches. Okay, another session of trying to find itself in terms of the large cap indices. Still looking for bids.

Jon Johnson, Chief Market Strategist
InvestmentHouse.com
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