Market Summary ;
The markets haven’t had a roller-coaster trading day like yesterday, in quite some time and we can thank President Trump for all the excitement. Yesterday’s trading, started off with the averages slightly lower across the board, but after a hour or so, the Indexes firmed up with the help of a rebound in the battered Retail Sector. The Indexes, then slowly worked their way back into positive territory and then picked up some positive momentum with the DOW and S&P scoring new intra-day record highs at 22,180 and 2490 respectively and it looked like we were in for a Bull Stampede, for the rest of the day.
Unfortunately, around mid-day, a story hit the wires that the North Koreans, had acquired the ability to place a small Nuclear warhead in a missile and that took the air out of the markets. Soon after, the President of the United States, decided that this was a good time to go for that win, that has eluded him for the past 8 months,
so he went out and outcrazied, the crazy Kim Jong Un, telling the World that if you $#@! the Bull, you get the Horns. Now, with the markets at new highs and with Money Managers, looking for any reason to take profits, the Nuclear pissing match, between Donald Trump and Kim Jong Un, provided that reason and the markets gave up the day. Overall, nothing terrible happened, except that a good day was wasted and when the nutty rhetoric, calms down, the combination of a good U.S. Economy, Low Rates and No Inflation, will continue to push the averages higher.
As one might have guessed, yesterday’s action, has messed up a fairly good Technical pattern and with tensions still running high, we may be in for a tough few days, with the path of least resistance down, so I would lighten up when you can, move to the sidelines and wait for the dust to settle.
Overnight, the Global markets traded lower on the Kim Jong Un, Donald Trump, fisticuffs and in early trading our markets are lower across the board. I am are seeing some “safe haven” buying in Bonds, sending the Yield on the 10 Yr down to 2.24% and the price of Gold and Silver higher.
Besides another wave of earnings reports we have the 2nd Qtr Productivity and Labor Costs at 8:30, but with everyone focused on the Trump/Jong, wrastling match I don’t think they will move the markets.
Today’s Early Markets
DOW Futures— down 40.00 London – down 52.58
S&P – up 900 DAX – down 150.56
GOLD—$1277 Dec Nikkei — down 257.84
OIL— $49.40 Sept HangSeng — down 97.78
DOW RESISTANCE 22,180 S&P RESISTANCE 2480/2484
DOW SUPPORT: 22,000 S&P SUPPORT: 2470/2460
$NASDAQ RESISTANCE 6380
$NASDAQ SUPPORT 6330