Before the Open (Nov 4)

Posted on by Jason Leavitt

Good morning. Happy Thursday.
The Asian/Pacific markets closed mostly up – there were several 1 & 2% winners. Europe is posting solid across-the-board gains. Futures here in the States point towards a large gap up open for the cash market.
The Nas has moved up 17 of the last 20 days and is above its April high; the Dow will open above its April high if the current futures level holds; the S&P will open about 15 below its high; and while the Russell has lagged some, it has done great the last couple days. I’ve been saying for several weeks I expected the April highs to be tested this winter…I didn’t think they’d get tested so soon.
Two of the three major news events are behind us. We now only have the employment report tomorrow before the open.
There are lots of gurus that have been expecting a pullback following the election – a buy the rumor, sell the news situation. For now they’ve been proven wrong along with the bears who keep trying to pick a top. It’s so important to trade what happens, not what you think should happen. If you’re trading a billion-dollar fund, fine, you can’t exactly turn on a dime. But if you’re an individual trader or a small fund, it would take you a couple seconds to reverse your entire portfolio. Liquidity is not an issue today, so you don’t have to guess when the market is going to turn.
Anyways the trend remains up, so that’s the way I’ll continue to play the market. But I’m still on the lookout for the three scenarios I mentioned in yesterday’s report. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Earnings Reports
this week’s Economic Numbers

0 thoughts on “Before the Open (Nov 4)”

  1. Everybody out there has a short memory. Remember we are now in
    the ‘end of month-beginning of month’ bullish cycle. That has
    been backtested for at least 30 years, maybe longer than that.
    So let’s wait until tomorrow or the beginning of next week
    for the smoke to clear and all the cigar smokers come down
    from their observation deck smoking lounge and walk amongst
    the proletariat. And oh, by the way, a pack of cigarettes
    in New York City costs in the neighborhood of US$12 dollars. HW

  2. Jason,
    Snip, “Liquidity is not an issue today, so you don’t have to guess when the market is going to turn.”
    Ahh, that would imply you know when the market is going to turn. Sorry, I don’t get you implication. By today do you mean just today or forever and what do you mean you don’t have to guess?

    1. When I say liquidity, I simply mean volume. I’m referring to how easy or hard it would be for you to reverse your position. Unless you’re trading billions of dollars or for some reason like trading low volume stocks, cashing out probably wouldn’t take more than a couple seconds.

Leave a Reply