Stock Markets are Higher This Morning
CNBC and Bloomberg have been beating the “trade war drums” for days and with the expected departure of Gary Cohn, they had a narrative to whip everyone into a frenzy. But, could it be like Josh Brown said on Tuesday, paraphrasing, “it’s right out of the Art of the Deal, punch your opponent in the face, then step back, gather your composure and start negotiating.”
Futures are Higher as the Narrative Changes
Stock Markets Higher
SPY will be trading right on top the 50ma (273.41) if futures open right here. Currently SPY is trading between 273.34 ~ 273.50 in the pre-market session.
After Hours blocks came through at 272.79 (+/-), so we need to stay above these for starters.
A friend asked me what I thought last night, specifically saying “what stood out.” The following is my response.
Nothing pointed to a reversal. The triangle pattern pointed out this morning (Wedneday) in the BLOG POST said we’d most likely “stay between 268 and 273.34 (50ma) overhead.”The BIG thing that stood out to me:– Stocks were being bought while the indices weakened.– Meaning, if all the big caps and second tier stocks were being bought– and IWM held green all day then the indices, SPY and QQQ were lying.The narrative “Gary Cohn resignation” changed around 2PM to “exemptions” for our neighbors North and South. Seriously, CNBC whipped everyone (average Joe) into a frnzy over one guy resigning. Anyway, CNBC details surfaced that the WH was back-pedaling on tariffs as it applies to Canada and Mexico.Just before CNBC announced the news, BLOCK TRADES started hitting the tape and HIGH TICK alerts were going off which means Buy PROGRAMS “algorithmns” were buying the bullish news. We saw that in the trading room as it happened..Other than that, I have no idea (sarcasm)Tomorrow will likely be bullish. I seriously doubt Trump wants the market to drop any further.
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