Good morning. Happy Friday.
The Asian/Pacific markets closed mostly up, but only India gained more than 1%. Europe is currently up across the board. France is the only 1% winner. Futures here in the States point towards a positive open for the cash market.
The dollar is down. Gold, silver and oil are up small amounts.
I’m not going to say today will be interesting because it’s the day before a 3-day weekend, but early next week things should get interesting. The short and intermediate term trends are down. The indexes have made lower highs and lower lows and have traded in a down-sloping channel this entire month. But on a longer time frame, a down-sloping channel within a 2-year uptrend is bullish, not bearish. The move against the overall trend acts to shake out the weak holders and cast doubt on the market before the trend resumes…at least that’s the potential.
Here’s the 30-min SPX. The pullback off the high (the number of points given back) is permissible, and the length of the pullback is also consistent with what would be considered a normal pullback within an uptrend.
Backing up, here’s the daily since last Sept. Purely from a charting standpoint, there is nothing wrong with this chart. What has played out over the last 4 weeks could be considered a normal pullback within a solid uptrend.
I lean to the downside right now, but I am far from being married to this stance. More after the open.
headlines at Yahoo Finance
today’s upgrades/downgrades
yesterday’s sector performance
this week’s Earnings
this week’s Economic Numbers
0 thoughts on “Before the Open (May 27)”
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Rollover Friday: Looking at the 30 min and 60 min $SPX chart
(with a slightly tighter sloping line on top), we really need
to power through to the upside today or we run the risk of
rolling over around mid-day today. 2. Another thing on my
mind is if the $US dollar ‘and’ the market drop together
that, in my opinion, is very bearish. Don’t forget, on the
Daily View Chart at Stockcharts.com we are still in a downtrend.
YOU fill in the blanks. What’s all this nonsense about
June being the big month, not to mention the buzz going
around that everybody is shorting the hell out of IBM.
(Ps. I didn’t sleep too good last night. Only the zen
master guru would have known something like that).
EUR came back in my face. Stopped out last night for small gain.
why do they call you Rowdy? are you a wrestler, or something like that? HW
I’m not rowdy roddy piper. He may not be alive–their life span isn’t very long. I’m rowdy yates from the 60’s show rawhide, played by mr eastwood.
Even though Melissa Francis (CNBC) lives two doors
down from me, I have no intentions of having an
affair with her. 2. Getting mixed singnals on IBM
(need Aussie JS to participate in this discussion).
3. Guru Master: why do they have a statue of Grant
in Lincoln Park, and why do they have a statue of
Lincoln in Grant Park? Chicago, Il. HW
12Noon: All the charts are now touching the upper band
of their falling flag patterns. Since we’ve had a three
day bounce do we continue up from here, or do we pull
back to the mid-reange of that channel? HW
Today:
VIX: down in, “What, me worry?” territory.
CAT: purring, but it needs to maintain this almost high and make a higher-low before I’ll believe the economy, not the QE is fueling the equity markets.
UUP: gap down on high volume. I’m guessing the volume is shorts covering and there’ll be a small bounce then more downside to the USD.
UDN: gap up on average volume suggesting the UUP is a shorts covering.
TLT: gap down on average volume.
SPY: yesterday’s close and today’s open suggest heavy buying.
EUR/USD: The EUR is flexing its muscles against the USD, UUP & UDN suggest the USD is going down, but I don’t think the EUR is that strong against the USD.
SLV: I’ll close my short at a loss if it goes above 37.50 today. I sure thought it was going down to 32.50 b4 going up. Looks like I was wrong. NOTE: It’s ok to be wrong as long as you’re right about being wrong.
My guess: QE3 is on its way and the SPY not the TLT will be the shining star on the Christmas Tree.
Fortunately for me I did get out of my
UUP calls yesterday with a $300 dollar loss.
Don’t forget, we are in the end of month/beginning of month
bullish cycle: 1. there is a major holiday thrown into the
equation and; 2. we were due for an oversold bounce anyway.
So all in all it’s way too hard to tell what is going on
in the market, even for a zen guru master trainee such
as myself. HW
Alas,i have bad news
my dead cat gruesome has left me for Rowdy ,the bull
gruesome said i was too bearish
todays action is prob opts ex in some parts of the world
the ftse was well controled
ibm pos has something to do with london
oz had their opts ex y/day
I have just the spot for gruesome—in the compost pile. Maybe the dobermans will leave it alone.
u have to watch gruesome,she bounces to much for me,Rowdy
She’ll bite you too
will china bailout europe/greece again
well it will have to
it owns the imf together with usa/japan
otherwise the big ponsi may come crashing down
but who is going to bailout china
well usa of course
We will bailout china and they will be our 52nd state. Iraq will be 51.