Before the Open (Jun 7)

Posted on by Jason Leavitt

Good morning. Happy Tuesday.
The Asian/Pacific markets closed mixed – there were no standout winners or losers. Europe is currently mixed – no standouts there either. Futures here in the States point towards a moderate gap up open for the cash market.

The dollar is down…silver and gold are up…oil is down.
The market doesn’t look very good right now. On top of the May downtrend, we’ve had 4 days of stiff losses that have put the indexes below their April and May lows. The falling patterns which gave the bulls hope have been invalidated. Several key sectors such as the financials, semiconductors, transports and others are well off their highs and not looking the least bit healthy.
On a shorter term time frame, some indicators are getting stretch to the downside, but otherwise, the intermediate term trend is down so rallies are to be sold until it becomes obvious that’s not a good idea.
It’s getting too late to short this leg down. I’d be a little cautious about entering new positions. Manage what you have and wait for the next bounce to re-short or add to positions. Tops take time to form. There are lots of up and down moves, so there’s usually second and third chances. Maintain some exposure just in case the market falls apart, but otherwise I wouldn’t chase things down here. 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 (Jun 7)”

  1. Pursuant to what Jason said a moment ago, one of the talking heads
    on CNBC said yesterday that he is going to inititiate a new position
    in the inverse ETF for the Russell 2000. Invariably, CNBC waits for
    too much confirmation to recommend a new trade and then they wind
    up getting whipsawed. Smart money went long at the bell last night
    in anticipation of ‘turn around Tuesday’ today HW

  2. R.I.P. Sonny Bono (died 1-5-1998) skiing downhill
    and looking at the hot babes at the same time.
    Hey, Sonny, multi-tasking does not work all
    of the time. I guess you found out the hard way.

  4. VIX: The theme song from Jaws, “Da-da-da-da-dump”
    SPY: of the equities I track they seem to be waiting. I’m adding Sell Stops in anticipation of the Flash Crash
    EUR/USD: Looks bad for the USD, “No pain, no gain, no QE3”. I wonder if Congress will capitulate when it hits 1.50? I doubt it. They want to spend money on buying votes not keeping the boat afloat.
    TLT: defiantly down.
    UUP/UDN: I can’t tell the difference. Looks like more volume on the UUP. Weird.
    SLV: I’m not sure if I’ll short it again, tempting though.

    1. RichE: good reflection on todays events. I just about
      stopped using the 1min and 5min charts, and will go
      with my new and improved 15min IWM chart. Did you
      get the parameters as I outlined them yesterday? HW

    1. I did find out something about ETF’s during the flash crash.
      And that is the newer ones with lower volume, sometimes it’s
      hard to get a bid and an ask. Therefore, when it comes to
      ETF’s always stick with the more mature ones with heavy
      volume and you should do alright. They don’t tell you
      that on the TV commercials, however. HW

    1. Coincidentally, we are in the summer doldrums.
      Aint too much gonna happen either way, I’m afraid.
      I guess we can kick the can down the road for
      a few more months, that is, unless Obama
      decides to Twitter his boxer shorts to the
      general public on You Tube. HW

    1. Yes..still alive even if we momentarily
      dip down into the forbodden area of
      let’s say 1250 to 1260, and then, bounce
      back to 1274. You can ‘then’ say we were there.

    1. I thought about that ‘key reversal’ idea of yours.
      However, on the IWM 15min chart we did hold and
      end in positive territory today. If the stock market
      was so easy we’d all be millionaires by now. 2) I took
      a small put position in RVBD at the closing bell.
      I think the big boys like to this a ‘punt’ or a
      ‘hail mary’. 3) If I get a quick 10% profit I’ll
      grab it and get the hell out, go flat tomorrow. HW

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