Trade Jitters

Trade jitters are once again front and center after and tough talk by the President in a CNBC interview this morning.  The President said he was ready to deploy 500 billion in China tariffs.  As a result, the futures are pointing to a lower open this morning.  Perhaps the good reports from MSFT, HON, and even the troubled GE will inspire the Bulls to defend, but political uncertainty is a tough thing battle right before a weekend.

Except for the bullish shown by the market on Tuesday, price action has been choppy and challenging this week.  The good news is that the current trend is up and the Bulls have to this point defended key price supports.  Remain flexible, unbiased and focused on price action clues.

On the Calendar

A rare Friday on the Economic Calendar with no market-moving reports.  We have a Fed Speaker at 8:20 AM Eastern and the Baker-Hughes Rig Count report at 1:00 PM to finish the calendar week.

We have 36 companies reporting earnings today with the far majority happening before the open today.  Among those reporting before the bell is GE, HON, SWK, RF, SLB & KSU.

Action Plan

Asian markets were mixed but mostly higher overnight, while European markets traded lower.  US Futures were negative but has started to move toward the open, but in an interview with CNBC, the President choose to fan the flames of the trade war sending futures quickly lower.  As I write this, there is still 2 hours before the market opens and with a bunch of earnings reports before the open anything is possible.  MSFT beat both on the top and bottom line yesterday sending the prices of the tech giant to all-time highs.

The Bulls did a good job yesterday of defending price support levels.  With the trade war jitters now back on the mind of the market the question is will they have the energy to do it again today?  I must admit with the strong earnings from MSFT I was hoping for at least a little Friday bullishness, but hope currently seems less likely after the 500 billion tariff presidential remarks.  As you know, I like to go the bank on Friday taking profits rather than adding risk ahead of the weekend.  It’s unlikely that change today but in this business, you always have to remain flexible.  Have a great weekend!

Trade Wisely,

Doug