Friday, 29 April 2016

Pre-Market Brief

Good morning. US equity futures are fractionally lower, sp' -1pt, we're set to open at 2074. With the USD -0.3% in the DXY 93.40s, the metals continue to climb, Gold +$6 in the $1270s, with Silver +0.5% in the upper $17s. Oil is similarly strong, +1.6% in the $46s.



*awaiting a quartet of data, notably Chicago PMI (9.45am)

So.... world markets are leaning weak into month end, and most of them are still broadly bearish from spring/summer 2015.... but more on that in this weekend's post.

As for today, regardless of the exact open, price momentum is leaning on the bearish side.. a hit of the sp'2065/61 gap zone looks due today.

All things considered, a monthly close in the sp'2050s would be a bonus, and offer the 2040s next Monday.

As noted yesterday, until I see a daily close in the sp'2020s, I will not have any confidence that the market has made a mid term high of 2111.

early movers...

AMZN +12%, EPS, $1.07... call it $4 a year.... a PE of roughly 160/170. What a bargain huh?
EXPE +11%, moderate net profit... far more than Mr Market expected
SDRL +17%... but still only in the $5s.

GDX +1.0%... as the metals continue to climb.

Update from Mr C.

The 'failed head test' scenario, if it plays out, offers downside to at least the sp'1600/1500s.. which would no doubt freak out the mainstream.

Overnight action..

Japan: CLOSED, settling April @ 16666
China: -0.2% @ 2938... so much for the 3K threshold.
Germany: currently -1.3% @ 10188

Good wishes for Friday!

8.53am.. a minor.. but important break lower in pre-market.. sp -6pts @ 2069.

earnings (or rather, lack of) from CVX not helping...  CVX -1.5%

Buffett 'earnings have never been better'. Is he referring to any country on this planet.. or some other part of the galaxy?

9.21am.. With GDX +2.1% @ $24.81.. the miner ETF has now officially doubled up since the Jan'19'th low of $12.40.

Pretty incredible.. considering Gold has not even broken into the $1300s yet.

9.23am.. notable weakness. Seagate (STX). -5% in the $25s as earnings missed.

9.45am.. Chicago PMI: 50.4...  WEAK WEAK WEAK... and borderline recession.