From the Little Red Book to the Shiny Black Car

News of Uber to merge its China business with the local Didi in a $35 billion deal hit the wires this morning, driving home issues for the economy, markets, and the looming general election of both the global, interconnected nature of world economy we live in now, along with hints of protectionism and nationalism, to boot. 

On that note, it is interesting to see many emerging and frontier markets quietly enjoying a brilliant 2016 so far, including the likes of South Africa (EZA), Thailand (THD), Chile (ECH). 

Although crude oil is red again this morning, we have yet to see any meaningful fallout from the recent weakness. In fact, the EEM, emerging market ETF, is still basing tightly above all of its daily chart moving averages and threatening a new breakout higher. At some point, though, I still suspect we need a true move higher in crude to add the wind to the backs of the emerging markets for a sustained leg higher. 

Biotechnology issues are also thriving this morning, though many of them, especially the mid-caps in the XBI, report earnings this week. ONCE (earnings on Wednesday) was a beautiful setup we noted for Members over the weekend, but dancing around earnings season is always a task unto itself. 

Although we are in a new month, the same pattern of morning softness on the major averages is persisting this morning. I am looking to see if dip-buyers arrive for their daily activities, or instead become a bit apprehensive in the heat of August.