Premarket Report for Tuesday, February 4, 2020

Options Activity:  More bullish options activity, yesterday.  The gamma flip point has risen another 10 points.  Gamma-related resistance at 3300 and support at 3200.  

Valuations:  Calls now overpriced and puts on sale. Dark pools remain buyers …after 3 timid days of -3-4% changes.

Volatility:  GJR-GARCH volatility forecast for today is bullish at 9.92%.

Auction Market Process:  Buyers are in control.

Macro:  Markets are now betting the impact of coronavirus will be insufficient to exacerbate or sustain the recent selloff.  Chinese and European stocks rose overnight.  The 10-year Treasury yield is at 1.575% and gold has slipped.  Coronavirus has hurt oil markets to the tune of ~20%.

CalendarEconomic Announcements:  Redbook (08:55), Factory Orders (10:00)  Earnings:  Ford Motor Co., Walt Disney Co. and ConocoPhillips

Taken Together

Markets appear less concerned about coronavirus and essentially unconcerned about US politics. While trade taxes hang over the long-term investment landscape, satisfactory employment and rising wages provide sufficient support for trend continuation.  Looks like a comeback day in the futures market.