Political & Weather Related Turmoil Undermine Bullish Stock Fundamentals

September 12, 2017 1:19PM CDT

Global stock markets continue to hold onto a generally positive tone this week, for there is some relief that Hurricane Irma did not inflict as much damage to Florida as anticipated, as well as the North Korean situation remaining fairly quiet for now. Asian stock markets were led by the soaring Japanese Nikkei, which posted its second strong gain this week due to a sliding yen, while a stronger pound has pushed the UK FTSE 100 into negative territory. Furthermore, the European indices such as German DAX and French CAC-40 are posting moderate gains this morning. The North American session will start out with a weekly private survey of same-store sales, followed by the July job openings and labor turnover (JOLTS) survey which is expected to show a moderate downtick from June’s 6.163 million reading. Lastly – Apple is scheduled to unveil their latest iPhone at an event in California’s Silicon Valley, which should add support to the NASDAQ.

DEC S&P 500: The strength in the economy is strong, and positive fundamentals have won despite numerous hurricane scares and North Korean dramatics. Traders see storm damage as significant, but that the economic impact will be short-lived and the economy will still benefit two and three quarters out. The gap up move on the day session chart is a bullish indicator for trend. The market has a bullish tilt coming into today’s trade with the close above the second swing resistance. The next upside target is 22187 with next area of resistance around 22131 and 22187, while first support hits today at 21919 and below there at 21762.

 

Dec '17 Emini S&P Daily Chart

Dec '17 Emini S&P Daily Chart

RJO Futures | 222 South Riverside Plaza, Suite 1200 | Chicago, Illinois 60606 | United States
800.441.1616 | 312.373.5478

The risk of trading futures and options can be substantial. Each investor must consider whether this is a suitable investment. Past performance is not indicative of future results. Trading advice is based on information taken from trades and statistical services and other sources that RJO Futures believes to be reliable. We do not guarantee that such information is accurate or complete and it should not be relied upon as such. Trading advice reflects our good faith judgement at a specific time and is subject to change without notice. There is no guarantee that the advice we give will result in profitable trades.

This material has been prepared by a sales or trading employee or agent of RJO Futures and is, or is in the nature of, a solicitation. This material is not a research report prepared by RJO Futures Research Department. By accepting this communication, you agree that you are an experienced user of the futures markets, capable of making independent trading decisions, and agree that you are not, and will not, rely solely on this communication in making trading decisions.

Distribution in some jurisdictions may be prohibited or restricted by law. Persons in possession of this communication indirectly should inform themselves about and observe any such prohibition or restrictions. To the extent that you have received this communication indirectly and solicitations are prohibited in your jurisdiction with registration, the market commentary in this communication should not be considered a solicitation.