The pendulum of the Phase 1 deal that has swing somewhat bearish heading into the weekend has this morning swing back to the bullish side, helping to inspire a Monday morning gap. The bulls got an early start after news that pro-democracy candidates won big in Hong Kong. The pullback last week that held trading sets up a great opportunity if the bulls can remain inspired to attack all-time market highs as we head into the Thanksgiving Holiday.
Asian markets rallied substantially overnight in reaction to Hong Kong election results. European markets are also green across the board this morning on renewed US-China trade hopes. US Futures opened bullishly and remained strong throughout the night, currently pointing to gap up opens across all indexes. Perhaps Santa can begin his run early this year fueled by strong consumer sentiment.
On the Calendar
On the Monday earnings calendar we have 31 companies stepping up to report. Notable reports include PANW, A, AMBA, HPE, NTNX, & PVH.
Action Plan
Trade uncertainty dimmed Friday bullishness, but they have spun the story once again, and this morning, the bulls are pushing for a higher open. Pro-democracy candidates won big in the elections on Sunday in Hong Kong with a record voter turnout. A major step for the people of Hong Kong but they still have an uphill fight with the Beijing control of top leadership.
With the short holiday week, we still have several notable earnings reports Monday & Tuesday and a busy economic calendar through Wednesday. However, expect volumes to decline quickly by mid-week and remain relatively low until Dec. 3rd as traders extend their Thanksgiving vacations. That being said the market indexes appear setup to attack new record highs as long as sentiment on the Phase 1 agreement remains positive. Last week’s strong consumer reading suggests Santa could have a nice run this year.
Trade Wisley,
Doug
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