Market Summary ;
On Monday, after a quiet “Tweetless White House” weekend, the markets stabilized and closed with nominal gains, after a tough time the previous week. On Tuesday, after the President delivered a well “scripted” speech on how the U.S. was going to “WIN” in Afghanistan, a place where the Russians, the Brits, the Mughal Empire of India, various Persian Empires, Genghis Khan and his Mongol hordes and
let’s not forget Alexander the Great of Macedonia, have all tried and failed. Anyway, the President’s calm and statesman like demeanor, calmed the markets to the point, that someone somewhere, set off a large wire-to-wire Buy program, Tuesday morning, that lifted the averages across the board. Unfortunately, the President delivered a not so pleasant, “unscripted” speech Tuesday night, which offended almost everyone
and sending the markets down across the board on Wednesday. Yesterday, the Jekyll/Hyde, Mr Trump, delivered another speech that was mostly pleasant and today averages are looking slightly higher in the pre-mkt.
Although the media, loves to give a reason, any reason as to why the markets go up and down, but the reality is that the markets were overbought and needed a rest , so the Presidents erratic actions over the past 2 weeks, were just the trigger that set off the correction. Now the problem is that with the earnings season ending and with very little news flow until Congress comes back, the markets are trading with the wind and forr now, that wind is named Donald Trump so deal with it.
Technically the Indexes are making positive “W” patterns, but the averages charts, are no longer things of beauty, because they have been making a series of “lower highs” and that is a negative Indicator, so pay attention. In the meantime, use Monday’s lows of DOW 21,600, S&P 2418, NASDAQ 6160 as bottoms, and Tuesday’s highs at DOW 21,900 , S&P 2452 and NASDAQ 6300 as a top.
Overnight the Global mkts were mixed and in early trading the DOW is up slightly, the Yield on the 10 Yr is 2.18%, the Dollar is higher and Commodities are lower except for Copper which is higher.
Today we have the Weekly Jobless Claims at 8:30 and Existing Home Sales at 10:00 the Jackson Hole Conference starts today, but the Big Guns, Janet Yellen and Mario Draghi don’t speak until tomorrow, so don’t expect much until then.
Today’s Early Markets
DOW Futures— up 20.00 London – up 28.58
S&P – up 200 DAX – up 44.56
GOLD—$1287 Dec Nikkei — down 80.84
OIL— $48.20 Oct HangSeng — up 116.78
DOW RESISTANCE 21,910 S&P RESISTANCE 2452/2460
DOW SUPPORT: 21,800 S&P SUPPORT: 2438
$NASDAQ RESISTANCE 6300
$NASDAQ SUPPORT 6260