Asian markets are closing either at or very close to seven month highs as comments from Larry Kudlow fanned optimism that a trade deal was close. Kudlow stated that progress was being made in the trade talks and markets have pushed higher in Asian trading with the Hang Seng adding 260 points and the Nikkei225 200 points.
You can’t help but think that we have reached this level on a lack of any negative news rather than a stonewall confirmation of anything positive. As we stand close to a level in DOW futures that we have retraced from in the past on several occasions, I am looking to short DOW futures above 26,250.
Non Farm Payroll numbers arrive on Friday. Regardless of optimistic comments about the trade deal, these numbers will either cement the foundations of this latest rally or make them crumble.
Oil continues to rally and is now touching $70 a barrell