Monday, November 05, 2018

Market Alert - Pre-Market

Futures vs FV: SP 2.74; DJ +8.2; NASDAQ -6.23

Futures sluggish at the open but have recovered from lower lows to start the morning. The open looks mushy after the Friday downside that capped three solid upside sessions. A bit of mush at the Monday open is not bad action -- anything avoiding a reversal after the Friday doji at resistance is not bad. Gives the bids a chance to build, allows the indices to work on a consolidation of the 3 upside sessions.

The news is just a hodgepodge with the main story the Tuesday US elections. That is the next big driver and potential market changer. Yes it will show certainty on one level in deciding control of Congress, but there is also uncertainty of what a democratic win in the House would mean in terms of investigations, etc. Thus, even when decided, the elections could be the issue that keeps poking at the markets.


China: Xi again mouths the words to a commitment for free trade. Blah, blah, blah.


Sentiment: Many upgrades today, including 2 on NFLX. There are calls to 'buy all dips' as one CNBC headline reports per a 'market technician.'

Upgrades: TEVA; UA; CVX; SBUX, NFLX


AAPL: Stops expansion of production lines for the iPhone XR. That is taken as another indication of iPhone market saturation. AAPL is off 3 clicks ahead of the open.


OTHER MARKETS
Bonds: 3.191 vs 3.22

EUR/USD: 1.1383 vs 1.1385

USD/JPY: 113.15 vs 113.18

Oil: 63.44 +0.30

Gold: 1230.20, -3.10


With the elections just ahead the market appears it wants to idle a bit, keeping the same trend from last week heading into the voters going to the polls.

______________________________________
Jon Johnson, Chief Market Strategist
InvestmentHouse.com

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