Before the Open (Apr 26)

Posted on by Jason Leavitt

Good morning. Happy Tuesday.
The Asian/Pacific markets closed mostly down, but the losses were minimal. Europe is currently mostly up; the gains are small. Futures here in the States point towards a gap up open for the cash market.

Most of Asia and Europe were closed yesterday, and it showed in the US. The market barely moved. Now we are the day before an FOMC meeting – a meeting more important than the previous several – so the market may again be quiet.
This is lucky for me since I unexpectedly wasn’t here yesterday and again won’t be here today…although this time I’ll have my laptop with me, so I’ll be able to keep up with things.
Since not much happened yesterday, the comments I made in my weekly report on Sunday and video I posted on the blog stand.
The overall trend is up; the near term trend is greatly improved. Although the Dow is at a new high, the other indexes have are not and therefore have some resistance to deal with. The state of the market is positive, and I’m only looking at long plays. If things change, fine, I’ll change my stance, but for now, going long is the only way for me.
Yesterday, silver (the metal) made a new all-time high, but the silver stocks all got hit pretty hard. I’m bullish silver overall, but in the near term there’s no way I’m long with a trading position. Let the stocks come down and shake out the weak holders. Then you’ll get some great buying opporunities.
Banks were weak yesterday. It will be a concern if the market busts out, and they don’t come along for the ride. For now it the divergence doesn’t bother me.
Rare earth stocks were back in play yesterday…MCP and REE had great days. AVL was weak early but closed positive. The group is solid and should be bought on pullbacks.
I will check in from time to time from the hospital, but I won’t be watching too closely. Have a great day. I’ll be back on my normal schedule tomorrow (coincidentally my wife’s mother is arriving in town tonight, so she’ll be able to watch one of the little ones during market hours).
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Economic Numbers

0 thoughts on “Before the Open (Apr 26)”

  2. Silver is a sign of caution. But crude is also a caution of what can happen to consumer demand. Wednesday will be a nonevent; the real news is what the Fed will pay its bank depositors. The Fed on deposit % rate to banks is the new fed funds rate. The Fed will feed its banks with higher interest rates. Ben’s fine adventures have no end.
    A top in eauities soon when QE2 formally ends and FED side payments begin. QE by another name?
    Meanwhile in the EU Portigal,Ireland and Greece continue to slide toward the edge: But the news is they still like the Euro more than the US$. That tells you the perception of where the US economy (and debt) are headed. Best to Jason, not sure what is happening.

  3. There seems to be a lot of talk-hype-blah-blah
    about Silver that resembles tulip mania IMO
    For example, yesterday silver pulled back,
    consolidated for 10-15 minutes, and then took
    off again…so the retail trade (who is always
    late to the party) is still hooked on silver.

  4. Silver Yells
    City sidewalks, busy sidewalks.
    Dressed in business suit style.
    In the air there’s a felling
    Of richness.
    Traders laughing
    Some are passing
    Some are wearing a grin
    And every street corner you’ll hear
    “Silver Yells”,

  5. is that it
    all hit intraday up piviots–intraday tick chart extreme up just now
    will wait a little longer—trading is timing
    by 3pm the fed will have phoned the bigboys with the bad news

  11. LOL
    i never touch the strong stuff so no dji for me
    one of my trading plans is to go in at tick extreme
    so took the ndx short for wave 1 at high noon ish–now just waiting for 3 down
    got a bit of ndx a few mins ago,but migh have been a bit early
    this is intraday stuff only
    no confirmation on overall direction yet

Leave a Reply