Good morning. Happy Friday.
The Asian/Pacific markets closed mostly up; Hong Kong and Singapore gained more than 1.7%. Europe is currently up across the board (except for Norway). Futures here in the States point towards a solid gap up open for the cash market.
Yesterday I stated I wouldn’t be surprised to see the market gap up and rally today – it certainly would be a surprise to most market participants. Well here we are. Part 1 of that scenario is here – an opening gap up.
Here’s the 60-min S&P chart I’ve posted a couple times this week. The bottom of the channel has been hit.
Some technical damage has been done to some charts, so we’ll have to carefully gauge how they do when they bounce. Does volume stay high? Are previous support levels becoming resistance? If this week’s selling pressure is mostly due to Libya, I would not expect us to have a huge correction…unless there is a clear change in character. The market has largely ignored all other situations overseas (Greece, Portugal, Egypt etc); this could be the same.
If the market does bounce here, we should be able to tell exactly how strong/weak things are. I’m doing a lot of sitting and watching. I see no reason to be aggressive in my own account. 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 (Feb 25)”
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Caution. THe GDP numbers Jan were not confirming, just more of the same.
Oil is a yo-yo this morning as the boys can’t place their bets based on turmoil if domestic demand is tipid. Up for a while on opening, but maybe not all day.
Next week we could test the lows of this last week and see what the damage has been.
I expect a resumption of the rally will into the end of the year and 10% gain. Sorry I don’t what made say that.
Jason: you seem rather complacent and will hold onto your 3x
inverse ETF’s such as TZA and BGZ for now. Is that correct? HW
No…exited yesterday. They were nothing more than short term trades to keep me busy while I wait for the dust to settle.
Jason: trading your moves such as exiting your 3x inverse
ETF’s should have been included with your morning report
today so as not to keep us in high suspense. Such as:
‘I’m doing a lot of sitting and watching…..’
You should have included in your commentary
about going ‘flat’ at the bell yesterday. HW
In the members’ section of the website, I communication throughout the day and answer all questions.
Neal: You need to spend some time with the homeless people
underneath the Brooklyn Bridge here in NYC. That’s where
I get my best trading secrets. Not from some other
reliable sources you might think of. HW
Besides the Boomerang you could have chosen the DillyBag or the aptly named ‘BullRoarer’ used by the Ngadjoni Tribes for example in the Nortern Terrority…..
WARNING
Sell your stocks and etfs before 10.3.2011. Why?
They are planning demonstrations in Saudi-Arabia starting 11.3.2011. This is something totally different than Libya. It will have “wonderful effects ” on stock markets around the world.
If this happens, I want only be long in DIG or other leveraged bull oil etfs.
Greetins from the Mediterranean.
Thanks for the post Juan.