Before the Open (Apr 21)

Posted on by Jason Leavitt

Good morning. Happy Thursday.
Tha Asian/Pacific markets closed mostly up – there were several 1% winners. Europe is up across the board. Futures here in the States point towards another gap up open for the cash market – not as big as yesterday, but still sizeable.

Yesterday the Dow made a new high, and today the S&P will open about 7 points from its high. Pretty amazing if you ask me. There’s been so much negative news out the last two months, and the bears could never take control of things. All they could do is push prices down a small amount, but the bulls were always there to defend their turf. Throw in a couple good earnings reports, and here we are near the highs. The indexes are in good shape, and charts of individual stocks are greatly improved.
Of course this is on the back of the dollar making a new low. When the currency goes down (get devalued), prices move up. Just like the price of a loaf of bread is up, the price of the stock market is up too.
The long term trend is up (it has always been up, shame on anyone for thinking otherwise). The short term trend briefly turned down (lower highs and lower lows were in place), but is now neutral. Trade the charts as they unfold, not as you think they should unfold.
The market is closed tomorrow, so this being the last trading day of the week, I wonder who will flinch first. Will shorts throw in the towel and cover or will longs take profits? I’m not predicting a huge runaway up day, but I do think the odds the market takes out the early-week lows are greatly diminished. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Economic Numbers

0 thoughts on “Before the Open (Apr 21)”

  1. jason….you nailed it,.who knows…………………..the mkt in my opinion…is defying reality…absolutely makes no sense…hard to read

  2. General observation: Over the last 6 months or so we’ve seen the
    first half of the week tend to be bouyant with stock prices going
    up. Then on Thurs and Fri we’ve seen the market sustain the
    heaviest damage. But just in the past few weeks it’s been just
    the opposite for some reason. Bear this in mind as we go into
    the long holiday weekend. I will stay flat and re-evaluate
    my position on Monday morning. One day Gold & Silver will
    implode..that’s when the US dollar does a key reversal
    and takes a technical bounce/dollar relief rally. HW

  4. Neal, honey..you’re pushing the envelope. Daddy wants you on
    your best behavior or else there is no candy for you tonight
    in the cookie jar. Watch IWM for smooth & consistent trades.

  5. Great earnings. Metals are making me happy. The Silver is parabolic,
    I am up 30% in two months in my calls. DXY is down and that is the story.
    The overseas pressure on equities prices is based on the weak dollar.
    The global stocks dollar demoninated are great buys.
    When the dollar stays down the foreign buyers roar into
    American business. The dollar will not bottom for the next year.
    Stay loose the politicians are negotiating on debt Ceiling. its
    a bomb no matter what they decide.

  7. Jason told me to go to sleep till the end of day,when the bulls give up
    its 2.49 AM here so i have woke up now
    think i’ll go back to sleep–we have some babes and beer on the menu for later today
    –happy easter,all

  9. just had a look at some index charts and they look very very very BEARISH to me
    could we leave behind some island bulls,even a dax doji
    we have filled the initial gap down but only the dji has made new highs,unconfirmed by transports-bkx banks-rut-ndx-spx or just about any world index –even the .nin–world top 100 stocks
    well yes it could go either way,but only scalping daytraders make money

  12. i only have 2 pet bears–teddy and grizelly and 2 dead cats,that have lost their bounce–gruesome and awesome
    but if the chinesse revalue the yaun this w/e ,i may buy some pandas

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