Editor's Note

Just when you thought it was safe to go back into the market a new problem arises. The event risk this weekend is political but it still counts. Earnings are slowing, the markets are weakening and Washington is in an uproar. While the political risk can cause a market reaction, it is sometimes slow to actually get started. Investors don't always pay close attention to Washington and the events can sneak up on the market. It is not like Apple missing an earnings report because that is a focus event and everyone is watching. The market reacts, investors buy the dip and life goes on.

Political events can begin slowly and then snowball into a firestorm. The current Comey termination has evolved into that firestorm over the last four days. It is only likely to get worse because the White House has now given multiple excuses, multiple time lines and multiple responsible parties. The press is having a field day playing up all the contradictions and the House and Senate committees and members are bordering on all out war. This could be a pivotal turning point in the Trump administration. Fortunately, the president is leaving town for a week and maybe the uproar will die down before he returns.

The S&P futures are slowly bleeding points, now at -2.50. Given the day's intraday weakness and the potential for another downdraft on Friday, I am not recommending plays tonight.



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