Futures are Rebounding From the Lows This Morning
News ALGOs continue their relentless punishment of futures this morning, as they seize negative comments from the President over more tariffs with US trading partners. This rhetoric is an impediment to any bullish trend, so be cautious this week.
Weakness – Futures Lower on Lack of Interest
Until the rhetoric dies down and trade resumes normality, we’d anticipate traders will hold back and trade less aggressively. It is this lack of interest that exacerbates these gap downs. Caution is warranted. Perhaps you should consider not trading until we alert you that it is safe to do so.
Stocks on the watchlist all show relative strength, money flow and potential follow through. New positions need to start with a Trade of the Day Setup (ToD) to confirm the bulls are serious.
Targets and support for the major US Indices are noted on the watchlist.
We are particularly interested in maritime shipping, as this group has received little attention of late. Many of the candidates have moved higher on substantially bullish money flow. SSW looks well positioned to breakout if the above conditions are met. Stocks from this industry group that broke higher include DSX FRP INSW.
Stocks in the consumer discretionary sector continue to show relative strength.
Finally, we intend to wait until after the Opening Range is set (9:30 AM to 10:00 AM) before sizing up new entries today. A bullish flow in the indices and sectors would be very helpful for any new longs. Lack thereof would likely lead to failed entries, so pay attention to what “they” are saying.
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