S&P and DOW futures up a wee bit. NDX futures better as market bids up the mega-cap names early after a decent drubbing yesterday.
REMINDER…END OF QUARTER AND JULY 4TH NEXT WEEK. NORMALLY A POSITIVE BIAS. Wouldn’t know it by yesterday.
BUT….as you know, before this week, more than half the market worrisome and now the other half gets distributed. What we are watching:
XLF better hold right in here. FINANCIALS matter.
The DOW right here at the 200 day average.
The SOX with a potential big top being put in place. Of course, we see a few timely upgrades by analysts this morning to try and save the day.
Central banks…yes, we are watching central banks as they cannot afford markets going down. We suspect we will hear some dovish crap soon. China has already loosened some bank requirements.
The biggest issues:
Foreign markets, to put it nicely, remain screwed. Just a big bludgeoning in EMERGING (SUBMERGING) MARKETS and many other countries around the globe. The election out of Turkey was quite Venezuelan!
Tariffs…not only do we not like tariffs, the administration is now becoming confusing with their words. And it provides no solace that the administration is watching markets as they pushed Navarro out on tv yesterday to quell markets. Yippee!
The yield curve. While we think all the fed intervention has changed this playing field, a yield curve is negative for banks and potentially for the market as the competition for money heats up.
Debt/deficits…no one gives a crap! Another $21 billion will be added to OUR debt this week and again, no one gives a crap.
The Trump tweets…We wonder what tweet going forward will really affect markets. The feeling of omnipotence creates vulnerability.
The Mets…after a magnificent start, wondering if they will win 60 games this year.