European Union Set To Increase Taxes On Tech Giants This Week

Index Futures Net Changes and Settlements:

Foreign Markets, Fair Value and Volume:

• In Asia 6 out of 11 markets closed higher: Shanghai Comp +0.34%, Hang Seng +0.11%, Nikkei -0.47%
• In Europe 12 out of 12 markets are trading higher: CAC +0.35%, DAX +0.42%, FTSE +0.49%
• Fair Value: S&P +3.28, NASDAQ +21.42, Dow +11.39
• Total Volume: 1.9mil ESM, and 1k SPM traded in the pit

Today’s Economic Calendar:

Today’s economic calendar includes Redbook at 8:55 AM ET, and the FOMC Meeting Begins.

S&P 500 Futures: #ES Weakness Continues Into Fed Rate Hike, Facebook Tumbles

172.56   -12.53 / -6.77% -2.21%

To no surprise, on yesterday’s Globex session, the S&P 500 futures traded down to 2633.00 at 3:40 am, and rallied back up to 2745.75 at 7:20 am. China closed higher, but Japan’s Nikkei closed down -0.9%, and the major European markets were weak, with the Stoxx 600 down -0.60%. The S&P 500 futures pointed to a 0.5% fall at the open as the Federal Reserve prepares to raise interest rates in the coming days.

The first ES print on Monday mornings 8:30 futures open was 2745.00. Just after the bell, the benchmark futures sold off down to 2738.25, bounced a little then sold off down to the Globex low at 2732.75. From there, the ES bounced up to 2738.50, and then sold off down to a new low 2716.75, down -1.4%. After another very small bounce, the futures sold off even further to 2711.00, down -1.65%, or down -45 handles.

Facebook tumbled, leading the ES lower, after it said a firm with ties to the 2016 Trump campaign kept data on tens of millions of users. Facebook dropped 6.3%, its biggest percentage decrease in more than two years.

After the European markets closed, the ES had a small uptick, and then traded down to 2707.50. After a few more small pops the futures traded down to 2699.00, rallied +13.50 handles, and then sold off down to 2697.25 before trading up to 2713.00, one tick above the pryor bounce.

After 2:00, the MiM started to show $1.6 billion for sale, then went to $603 million to sell, and finally dropped all the way down to only $85 million for sale. The ES pulled back a little and then traded up to 2719.00, 22.75 handles off the low. On the 3:00 cash close the futures traded 2781.75. After another small pullback the ES traded up to 2723.50, down -32.50 handles, or -1.18%, and settled at 2723.00 on the 3:15 futures close.

Lets face it, our personal information on the world wide web is for sale, and it’s being used against our will. It doesnt matter if its Cambridge Analytics, a firm with ties to the 2016 Trump campaign, or JP Morgan, or Experian getting hacked. More than likely, most of our personal information is already on the dark web.

Take a look at this story from Fortune magazine, ‘Here Are 10 of the Biggest Corporate Hacks in History’. From North Korea to Russia to China, cyber security is one of the biggest problems facing the national security of the United States.

http://fortune.com/2017/06/22/cybersecurity-hacks-history/

In the end, I had been hinting at yesterday’s let down, I could feel it. The trade wars and President Trump firing some of his most talented people has set the tone for a very unstable market place.

2018 The Year Of ‘The Mad King’

If you’re into reading charts, two weeks ago the Nasdaq made a left shoulder, last week it made a head, and now there is a big neckline down. Tech has been hot, but Google was down $35.91, and Amazon was down $26.75. The PitBull asked me what I thought of the ES when it was on its low yesterday, and I said I thought it would rally, it did. I like Trump, but there was a story out in News Week saying that he has become the “Mad King’. I think that’s correct. He hired smart people, now he is firing them for younger people who won’t set him straight. China is going to retaliate, and while the government may not find anything on him with the Russians, who’s to say they won’t find something else. In the recent snap elections, the Democrats have picked up ground.

The markets hate uncertainty, and that’s what we have. Who is to say that FB won’t fall further? I think it’s time to manage the positions you have and not add any more risk. Small is good right now. I am a bull market guy, and I think there could be a rally, but I don’t think it’s going to hold. There is just too much shit going on. The government may not have Trump on any Russian connections, but remember how they got Bill Clinton? It first started as a land deal, and then it went to Monica Lewinsky. I also think the midterm elections could spell a catastrophe for the Republicans and Donald ‘The Made King’ Trump. The big uptick in volatility that occured in the beginning of February is far from over. 2018 is not going to be filled with big rips and big dips.

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