Good morning
Like there wasn't enough for the markets to worry about! Concerns about a government shutdown rose yesterday after Trump indicated he would not sign a stop gap bill without border wall funding. This morning General Mattis's resignation letter hit social media and appears to be just one more thing for people to worry about. This week has been brutal for the bulls and there are worrisome signs that this could get far worse before getting better. There has been a ton of damage done technically and it will take a long time to repair.
However, like any other disaster, we have to wait until the storm is over before we can start the process of rebuilding. Unfortunately, we do not have an all clear yet and it could be awhile before we do. It seems like we get through one storm and another one shows up on the horizon. As we head into the holiday season there will likely be some low volume activity in the markets and we may get a bounce but I do not expect it to be very convincing. We have indicators like the T2106 McClellan oscillator the T2107 and T2108 that are near levels that have historically proven to be extreme leading to very powerful counter moves. We could see a powerful snap back in some sectors and individual stocks but I have concerns about how sustainable it will be.
*Click on the banner above to sign up for Finviz ELITE> I use Finviz every day and find it worth every penny!
Regardless of what happens this is not an environment where you want your emotions getting the best of you. Do not chase, do not panic, do not take to much size, do not blindly enter a trade. If you find yourself stressing out over this market and making poor decisions, turn off the computer and walk away. Go spend time with your friends and family and prepare to enjoy the holiday season.
We had a couple of earnings reports that were positive from CTAS and NKE. The cannabis sector is still on the radar as more positive news flow continues in the space. It really appears as though we are starting to see who the legitimate future big players in the space will be.. CGC TLRY CRON and ACB seem to be separating from the rest of the heard with the partnerships they are signing.
Equities, oil and gold are all lower in premarket. I will be watching some of the volatility and triple levered ETF's today and looking for signs of a potential bounce from extremely oversold conditions. We have some economic data that could impact markets today.
Today's Economic Calendar
8:30 Durable Goods
8:30 GDP Q3
8:30 Corporate profits
10:00 Personal Income and Outlays
10:00 Consumer Sentiment
11:00 Kansas City Fed Mfg Survey
1:00 PM Baker-Hughes Rig Count
