The Morning Look

Stock Market Overview:

U.S. stock futures are up on Monday as investors digest last week’s historic sell-off. The market is deeply oversold and way overdue to bounce at some point. Gary has expressed caution and has been telling you about how the market has been getting weaker not stronger over much of 2015.

Gary’s Thoughts: Our measures of overbought/oversold are showing the most oversold conditions we have seen since near the lows in late Sept/early October. It is never a guarantee but these conditions always get worked off with time and price. Price moving up as days go by. THIS DOES NOT CHANGE THE BIG PICTURE. The Dow just dropped 1400 points in 7 days. This drop must be worked off. 

Economic Data:

• 4-Week Bill Announcement 11:00 AM ET
• 3-Month Bill Auction 11:30 AM ET
• 6-Month Bill Auction 11:30 AM ET
• Dennis Lockhart Speaks 12:40 PM ET
• Rob Kaplan Speaks 7:50 PM ET

Highlights Of The Day:

• Powerball jackpot hits $1.3B, new world record
  Gary’s Thoughts: We are very surprised no one won in the last drawing. We expect 5-10 winners on the next one. Please be us! 

• China forex regulator says will ramp up risk control efforts
  Gary’s Thoughts: How about all the regulators in China just getting the hell out of the business of rigging their markets. In fact, how about every government and regulator around the globe just going away and let the markets be.

• 2016 brings more pain to U.S. shale companies as crude sinks
  Gary’s Thoughts: Unreal story of boom and bust. Never in our wildest did we think price would go so low…so quickly.