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Monday, June 11, 2018

Market Alert - Pre-Market

Futures vs FV: SP +1.17; DJ +42.47; NASDAQ -8.87

'Most important week for financial markets' or 'week from hell'? I guess that is pretty much the same description when it comes down to it.

G-7, G-6+1, G-8 -- whatever you call it -- was a first with the US not signing off on the piece of paper. Then Trudeau's press conference post-Trump's departure and the 'backstabber' claims. Still mostly not discussed: the US' offer for truly free trade. Colon puckering followed as the EU leaders pondered getting what they pay lip service to. Will be very interested to hear how they reply, but also know they likely won't reply. If this is not THE news story from the G-7 as it should be, then they can ignore it. Why? Because what is not in the news is not real or fake; it just doesn't exist. Whoa, to existential for a Monday.

Okay, what is the fuss about? NK/US summit Tuesday where Trump says he will know in 6 minutes (or was that seconds) whether Kim Jong Un is full of it regarding denuclearization.

Second, ECB 'live' meeting to discuss ending QE in 2019 -- or some year down the road. Lions, tigers and bears, oh my!

T and TWC merger decision from the government.

Expiration for June.

Probably leaving something out but you get the idea.

The market is rather ho-hum about it all with futures flat. Despite the Thursday bump that hit growth more than other areas (read NASDAQ), Friday was upside and the indices are in uptrends. Thus, a soft open is not a bad open. Indeed, futures are coming well off the lows with NASDAQ moving from -12+ to -8ish.

Not a lot of other hard news.

AMZN: Claims of Chinese sweat shops working for the company. Sweatshops in China? I am shocked, SHOCKED, that is going on.

FB: WSJ reports FB continued its data sale deals after 2015, the time it said it ended those sales of user data. FB and Zuckerberg less than honest? I am shocked, SHOCKED, that could be the case.

Bonds: 2.961% vs 2.948% 10 year. Bonds sell, yields bump back up. Anticipating bonds should sell down from the bump higher last week.

EUR/USD: 1.1791 vs 1.1773

USD/JPY: 109.92 vs 109.45

Oil: 65.11, -0.63

Gold: 1302.30, -0.399

Futures sold modestly into 8:00ET but have since bottomed and are grinding back toward the Friday post-close highs. That low to high action in an uptrending market is occurring some pre-market. Looks as if the G-7 and trade implications are not that big a deal to the market.

To recap from the weekend, there are still good patterns in position. Some broke higher last week, others remain at the ready. Of course the rally needs new breakouts. This low to higher open in a market trending mostly higher could trigger some more moves.

Jon Johnson, Chief Market Strategist
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