Before the Open (Apr 27)

Posted on by Jason Leavitt

Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed; Japan and Taiwan gained more than 1%. Europe is up across the board. Futures here in the States point towards a positive open for the cash market.

Yesterday the Dow, Nas and S&P made new highs; the Russell isn’t too far behind. Not bad considering last week everyone was thinking a major correction was in the works…especially after Monday’s big gap down and sell off. Yet here we are at new highs…whether it makes sense or not.
Today is Fed day. News trumps the charts, so the bullish technicals take a back seat right now, but while the Fed often causes a hiccup in the near term, they rarely change the overall sentiment. Also, there’s been a strong tendency for the market to move one way after the 2:15 EST announcement and then reverse course the next day…something to keep in the back of your mind.
The upside is the only side I’m looking to play right now. If yesterday’s breakout ends up being a false move, fine. But the odds say get long (selectively, don’t buy in front of earnings).
I may or may not step out today to go to the hospital. It’ll be a last minute decision. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Economic Numbers

7 thoughts on “Before the Open (Apr 27)”

  1. The Fed event will be anticlimatic. My work shows the S&P
    could suprise with a reversal. The Greek 2 year is at 25%
    this morining. DXY is hanging at 73. The earnings good so far.
    LEI is up 2.5% OK. Another leg up into the end of QE2??
    Jason you buy a hospital, or a new baby?

  2. The charts are the best way to play it, and with all
    the circumstances we go through on a daily basis
    don’t forget: the market moves ‘up’ on light volume
    and the market moves ‘down’ on heavy volume. HW

    1. Howard,
      Would you expand on price/volume. I’ve been toying with what I call, “Horse Power Indicator”, price-volume-time. How much work did it take to reach the peak, how much to hit the dip. Which would rate the peaks and dips in work.

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