Another day and more new record highs as the bullish trend show no signs of stopping their push higher just yet.  Though yesterday’s rally was not broad-based key stocks, continue to find the support needed to drive the indexes higher even with troublesome developments in the US/China Phase 1 negotiations.  News that the USMCA trade deal may be finalized soon helped to lift spirits ahead of the busy morning of economic reports and the resumption of the impeachment hearings in the House. 

Asian market closed their week mixed amidst trade tensions and Hong Kong protests.  European markets are mostly bullish this morning renewed trade deal hopes and the US futures point to another gap up and new record highs at the open.  With a light day of earnings attention will shift to the possible market-moving economic reports and the political drama unfolding on Capitol Hill.

On the Calendar

On the Friday Earnings Calendar, we get a break from with only six companies reporting today, but we still have a couple of notable reports with JNP and JD, which both report before the bell.

Action Plan

The bulls achieved more record highs on Thursday, although the rally was not broad-based, with the T2122 indicator moving slightly lower in the process.  Nonetheless, the bulls remain in control, and the technicals of the index charts remain very bullish.  The House will resume impeachment hearings today, so beware of possible events that could quickly move the market with more than enough political rhetoric to choke both bulls and bears. 

With the 4^th quarter earnings season winding down, we have a very light day on the earnings calendar this Friday.  However, we have a big morning on Economic Calendar with several potential market-moving reports that could inspire some price action volatility.  Most notable is the Retail sales number at 8:30 AM ET, and the Industrial Production follows quickly after at 9:15 AM.  Futures got a lift this morning on a story that suggests Congress is nearing the completion of the USMCA trade deal with Mexico and Canada.  After the morning rush, don’t be surprised if the congressional hearings divert attention, and we have a period of light choppy price action as the political drama unfolds.

Trade Wisely,

Doug