November Begins

Good morning. Premarket futures have been volatile and point to a mixed open.

In the early going, the newswires are relatively quiet especially for a Monday morning. Although regulators had to close the 17th bank of the year, the credit markets continue to show steady improvement. In fact, Libor has dropped to the lowest level since the collapse of Lehman Brothers on Sept 15th.

Premarket gainers: DRYS, UBB, VMED, SRZ, PSUN, SOL, RIGL, LAMR, MIND, ENZN, PRGN, EGLE, FSYS, LVS, PRPX, CRNT, STEM, UAUA, OSK, DPTR, TIN, PLA, BWP, LNUX, HIG, TBSI, CROX, ESLR, BID, & MTW.

Premarket losers: VSE, ARTC, GLRE, AMCC, NSTC, CRBC, WFT, TCL, VOD, TTM, HOV, RBS, SBUX, LFL, UBS, NSTC, & BTM.

There will be a lot of data out this week including Friday's jobs report. But, for today at 10:AM we have reports on Construction Spending and the ISM Manufacturing Index. Like we saw last week, positive surprises in this data would help the market tremendously.

As you probably already know, November has a positive track record and has historically been the strongest performing month for the S&P and the second strongest performing month for the Nasdaq. And, you're likely to hear lots of chatter this week about how the market will perform depending on who wins the election. No matter what you think about that, I think we'd all agree that it is a nice change from the panic/crisis mode that has been in place for the vast majority over the past couple of months.

For today, we're a bit overbought and a slight pullback would be expected and probably a healthy thing to see especially if we move lower this morning and rally back this afternoon. Overall, we want to see a sure, but steady assault toward those key levels of resistance that would build confidence and bring in both individual and institutional buyers on the dips.

Let's make it a great week!