For those who enjoy chasing the market higher on rumors of an imminent breakthrough on the China trade deal (coincidentally released shortly before futures open every Sunday) today is your kind of day.

After retracing 78.6% of its late 2018 plunge last Monday, ES showed signs of a retreat.  But the latest news — this one planted with the WSJ — has put an end to that.  At what point will the algos ignore this ruse and pay attention to deteriorating data?

continued for members… (more…)

The latest dismal economic news — which the market is ignoring in favor of unsubstantiated rumors of an imminent trade deal with China — is real personal spending which dropped 0.6% in December to a 10-year low.  So much for Mr. Kudlow’s retail sales “glitch.”

Futures, of course, are much more interested in the latest VIX decline and USDJPY rally.  continued for members… (more…)