Before the Open (Aug 4)

Good morning. Happy Thursday.
The Asian/Pacific markets close mixed. Australia, India, South Korea and Taiwan lost more than 1%. Europe is currently mostly down. Austria, Norway, Stockholm and London are down at least 1%. Futures here in the States are down a bunch. About half of yesterday’s move off the lows will be wiped out at today’s open.

The US dollar is up over 1% and trading at its highest level in 10 months. Gold and silver are up slightly. Oil continues to slide and is down to $91.
Yesterday the market finally bounced. It sold off hard early…lots of stops were hit, lots of sell programs were triggered, lots of margin calls no doubt added to the selling pressure. Then the indexes bottomed and bounced and closed green after having been down a bunch early. Volume was heavy and considering the losing streak and where many indicators were, the reversal was not a surprise. But as I stated yesterday, who knows how long this will last or how far it will go. Lots of technical damage has been done…enough that if left alone, the market will not be able to move up here uninterrupted.
My downside SPX target remains 1200 (or thereabouts). Several days ago that target constituted a decent drop, but yesterday’s low was 1234 and today’s open will be around 1245 – we aren’t that far away. That’s the line I’ll be using to determine the long term trend. 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 (Aug 4)

  1. Checking some of the blogs that I follow, they all point to the
    next wave down: 1) $SPX 1234.56 2)then bounce into yesterday’s
    high of $SPX 1260 and; 3) down to the S&P 1200 area. HW

  2. i would not be to gleefull about a strong move up from here or a strong bounce
    there is more downside
    this is a usa,europe,japan crissis,thats hurting asia
    a crew cut is the recomended hair style and the instos know it

  3. AussieJS: I would like to take you & Zen to New Orleans and show you
    the power of the mighty Mississipi River. So the point is do not
    underestimate the mighty power of the Dow Jones Industrial Avg. HW
    (buy programs might kick in sometime today, an hour into trading)

  4. short what the instos hold as its a insto sell off
    they have to raise capital to pay for their haircuts
    the selling is coming from europe –they hold usa shares
    watch the dax for a turn
    forget the charts –no bounce till liquidations over

  5. at the appropriate time many times a day
    the rut has broken its year long sideways
    the dji is a square or cube but definitly not a triangle
    and the spx has been eaten by the jaws of death

  6. Enough carnage!
    That last dip (ESU1 2min 11:46 ETZ) looks like it was bought, but I’m going wait for the ‘All Clear’ from Neal before I go LONG.

  7. Low volume on the dip, but this is afternoon, flip a coin. Currently forming a pennant which should resolve to downside.
    Anybody got a good Hush Puppy receipt? I’ve got a lot of fish to fry.

  8. if we knew the contrived jobs nos tomorrow,but im sure the instos do
    so i would be flat at end trade today
    by the way the instos have been setting up for this down for 2 months and are well hedged short all the way down and pos for another 2 years
    target spx 333

  9. there are no bids out there
    if the apples get worms and the defensives in the ndx 100 give way—-well
    1175 on spx–but we are at support and panic capitulation pos but doesnt have to be
    who knows –its been a great nite and am going to sleep

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