Good morning. Happy Tuesday. Hope you had a nice long weekend.
The world is green. Every index in Asia/Pacific closed up. Every market in Europe is currently up. Futures here in the States point towards a solid gap up open for the cash market.
The trend is down, but as pointed out over the weekend, there are several indicators which suggest an oversold condition exits and a bounce likely to play out soon. How far such a bounce goes is not known, but given the volatility, 80 S&P points isn’t out of the question. There are way too many people stacked on one side of the market, way too many people looking at the head-n-should top and getting giddy about a collapse. When such is the case, the market doesn’t oblige.
If we do get a bounce, know what you’ll do with your positions. Such decisions are made during non market hours, not in the heat of the moment. Either cover your shorts and look to re-initiate those positions or ride them out. Don’t be middle of the road. I personally like to cover and re-short.
More after the open. There’s no sense reposting charts that were already posted this weekend.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers
0 thoughts on “Before the Open (Jul 6)”
Leave a Reply
You must be logged in to post a comment.
Jason: I have heard you say several times in this market to be either short term or long term but not in the middle. When you refer to short term, do you mean not holding overnight? When you say long term, are you talking weeks or months? When day trading, what chart do you use for entry and exits? Do you use a week chart for long term? Thanks. Dan
I responded to your email.