The NQ9 is about to turn negative, while the small caps experienced a continued selling move.
The financial sector continued attracting buyers though (Higher rates meaning higher expected margins.)
Materials seem to be weakening, with a much weaker copper price.
The biotech sector is I believe under great danger of falling lower.
The NK issues weighed the markets down overnight, pulling the US$/Euro with it.
The Yen also bounced, but it is now fading back down.
Conclusions:
I believe that at the open, the NK issue will already have been discounted by the markets.
However, we would need a really great Tax deal proposed by Trump for the markets to break to new highs. Since that is the only expected positive push left for the markets, we could witness a sell-the-news type of move.
Below are a few trade ideas:
Long IPHI/LH/OTEX (I have a LH long position)
Short GM/KEX/LOW (I have KEX/LOW short positions)
