Tuesday, November 13, 2018

Market Alert - Pre-Market

Futures vs FV: SP +4.63; DJ -22.82; +24.40

Stocks in the rest of the world bounced and US futures have done the same. That said, they are well off the highs hit just after 7:00ET. Rather weak-kneed bounce.

Trade: Reports are that China's 'top' trade negotiator will meet with the Trump team ahead of Trump's and Xi's next meeting. Certainly a deal will be struck (queue the crickets chirping). This is on the heels of China's 'charm offensive' where it tried to sway others to its side. And that followed its public chiding of the US; that worked. China: you are communist and the West knows it. Take off the sheepskin you are trying to wear.


AAPL: GS downgrades its iPhone sales numbers based upon LITE (facial recognition) cutting its own numbers. AAPL down another 2.5 clicks.


BA: WSJ reports that BA withheld information about problems with the automatic stall prevention system on the plane involved in the recent crash. Always a bad move for the company and by extension investors. BA is a pretty big weight on the Dow.


Small Business: Optimism posts another record.


Israel: Ready to retaliate against the 300+ missile launches into the country. The intensity of the missile attack was unprecedented in these type of attacks. Anticipate war, an all out war. Does not look good.


Downgrades: BBY; AAPL

Upgrades: NVDA; KORS


Sentiment: BAC says the 'big low' in stocks is not here yet.


OTHER MARKETS
Bonds: 3.158% vs 3.186%. Bonds rally modestly after a day off

EUR/USD: 1.12641 vs 1.1217. Dollar gives back some

USD/JPY: 113.88 vs 113.81.

Oil: 59.04, -0.89

Gold: 1202.30, -1.20


Futures continue their erosion into the open with positives flipping negative, at least on DJ30 and largely thanks to AAPL, BA. Obviously not a positive as the sellers are using the early gains to sell. Sellers are clearly not finished, and frankly, the upside in the pre-market earlier today was not a good thing for a rebound attempt. The market needed to sell again and aggressively to try and put in an intraday reversal. That looks to be out of the picture for this morning and it will take this high to low flip to get really ugly to work a reversal.

Not saying the market is going to reverse just because I am talking about the possibilities of reversal. Just sizing up what the market is showing to be prepped for the possibilities so when they happen we are not just sitting there holding your business so to speak. Again, the sellers are clearly still present as even a futures bounce was sold before the market opened.

______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com

Alert Key
http://www.investmenthouse.com/alertkey.htm

PLEASE DO NOT REPLY TO THIS EMAIL. USE THE CONTACT US PAGE ON OUR WEBSITE.

Customer Support: http://investmenthouse.com/contact_us.php

No comments: