Before the Open (May 2)

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets closed mixed (some of markets were closed today). Europe is mostly up; there are no 1% winners. Futures here in the States point towards a solid gap up open for the cash market. This of course comes on the heels of all the indexes making new highs and closing new their highs.
Last night it was announced Osama Bin Laden had been killed. This is nice, but to me it’s more symbolic than anything. He wasn’t running the day to day operations of al-Quaida any more, and many say he was acting as a retired chairman of the board. There are many others fully capable of running the organization. al-Quaida is alive and well, and they will be looking for revenge. Hopefully the US doesn’t let down its guard.
Futures jumped on the news but have settle down some since last night. Commodities are down. Silver is getting hit hard, but that has more to do with margin requirements on the metal being raised.
The long term trend is solidly up; the short term trend is solidly up. The most bearish arguement that could be made right now is that the market needs a rest after great performace of the last two weeks. Otherwise the market is clicking on all cylinders, and I see no reason to be anything other than long.
If there was a warning sign it comes from copper prices which topped out in mid February and are very close to hitting their lowest level since December. Otherwise everything supports the uptrend.
I usually don’t have much to say on Monday’s because I put all my thoughts in the weekend report. Today is no different. I’ll have more comments to make after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
this week’s Economic Numbers

0 thoughts on “Before the Open (May 2)

  1. From time to time, John Murphy over at Stockcharts.com makes reference
    to Elliott Wave theory. The most recent post states that Wave 5 on
    the S&P could terminate at 1386. That sounds very logical to me
    as we are now in the beginning of the month bullish cycle, and
    a short term topping out process could happen around 1380-1386. HW

  2. This is the pre-election cycle which is bullish into the end of 2011.
    The QE2 ends officially in June but will continue as the Fed maintains
    it balance sheet by reinvesting its interest in bonds. That is still stimulus.
    The Special senate group of six is suggesting they have a working basis for
    a debt ceiling adjustment. If so that is bullish.
    Overall, I will be long into the fall; Novemember to May each year
    is favorable for investing. This is not the year to sell and go away in May.

  3. Something in my mind tells me that they did not use waterboarding techniques
    to find out where Bin Laden was hiding out. Some other powerful incentive
    had to be involved beyond that in this particular situation. HW

  4. The market should have been up 200 points already.
    Something is definitely wrong. Watch for some
    stupid Bernanke announcement or something
    like that. I am currently flat in all of
    my positions. Call me suspicious. HW

  5. i have had a look at Pattern Trapper and his course apears very good–but what is good for a daytrader might not be of use to a swing or possition trader
    pit trader piviots are the way to go intraday as thats where the instos have they buy/sell orders set at–retailers use sup /res
    but if trading usa u need charts of ndx/spx/dji –both cash and futures open as one index piviots call stall the others–day open close ,highes are always important
    Howard -1386 is a natural price extension and if we can get past 1372 then that should be next
    got short dji at 12900 spx at 1274 and ndx 2425 on bin lardins announcement oz time
    —-did we know that ndx gets reweighted today and apple losses further weight

  6. Something is definitely wrong with the market today.
    The Russell 2000 should be leading the charge.
    And this is supposed to be Mutual Fund Monday??
    I ask you, am I going crazy, or what???

  7. Hi,
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  8. 3pm Treasury announces it will suspend purchases of securities
    at the local state governments level. Didn’t I tell you there
    would be some sort of announcement today? HW

  9. thats curtains for the munies that have spent all their pension fund money
    and i thought the world had faults broke on bin ladin
    back short for close but may get out before close

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