Market opens flattish but turned lower quickly after an ugly week which has investors concerned, confused and in many cases, trapped. The futures last night were substantially lower, but most of the losses were erased as we start the new week. The same issues are plaguing global markets, namely: trade war, Fed tightening, economic slowdown and Brexit. Each one is a major issue in isolation. Combined, it’s a massive force that is hammering stocks. British Prime Minister Theresa May is reportedly trying to cancel tomorrow’s vote that appears to not be going her way. This whole Brexit process has not gone her way. It’s not really clear which way it is going. Another Fed hike is likely in December, but the probabilities keep shrinking for more tightening in 2019. The price of Oil is falling too, despite some positive steps towards reducing production. The Dollar is strong again, which has generally contributed to lower stock prices and commodity prices. Gold is flattish as are interest rates. Tech is catching a bit of a bid, except for Apple which got hit with a court ruling in China. Keep those belts buckled. The weakness has not dissipated.
Have a great morning,
Mike Frazier
