Market Alert - Pre-Market

Futures vs FV: SP +0.59; DJ +30.04; NASDAQ +3.10

Futures started flat, faded, trying to recover back near flat to positive toward the opening bell. Same stories are out there with nothing really to drive stocks but still no sellers.

China: #2 man to Xi says China is facing 'greater difficulties' keeping the economy stable. Well, duh. Communists trying to control markets yet they want good markets. The two inevitably diverge even if they look better at times. After all, the USSR was thought to be stronger economically than it was, and China, most do not remember, had to lessen its strict control in order to get it citizens to work on inventiveness.

Oh, and China also had to STEAL virtually all of its technology from the US and other western countries. And now, as the trade war ramps up and it cannot compete, is ramping up its computer hacking to steal even more IP. It is very difficult dealing with countries that do not have the same value systems we do. That is why it is a fool's game to assume that China will abide by any rules. It is just not in a communist's playbook to do so. You must expect and anticipate cheating and stealing. Alas, our leaders for decades thought they could strike deals that china would abide. Again, a fool's game that we are now trying to end.

Ultimately to make a deal Trump has to give Xi a way out to save face while still doing what we want on IP and the other areas. THAT is the trick. You have to convince China you truly mean business this time (versus other half-efforts by many prior Presidents), something Trump is doing, then play a more subtle role in giving China an out and looking as if China got something as well.


Canada: US/Canada trade talks resume today.


Housing starts, Aug: +9.2% led by multifamily (apartments).

Housing permits, Aug: -5.7%


North Korea: Meets with SKorea and promises it will shut down its reactor and close its missile silos . . . again.


TLRY: up 70+ clicks premarket. Saw a headline saying it was going parabolic. No, it is going ballistic. Parabolic will come when it rolls over and dives. For now we are enjoying our position streaking toward the sky.


OTHER MARKETS
BONDS: 3.055% vs 3.057%

EUR/USD: 1.1672 vs 1.1671

USD/JPY: 112.30 vs 112.33

Oil: 69.82, -0.03

Gold: 1208.80, +5.90


Futures continue to work their way back upside toward the open. NASDAQ was down 10+ points earlier, so there is some improvement. On that index, watching AAPL, AMZN, to see if they can join in today.

With TLRY spiking, CGC is up a few points as well. While this area may be getting a bit hot, we are still interested in CGC as it breaks higher after the recent test.

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Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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