Before the Open (Jan 23)

Posted on by Jason Leavitt

Good morning. Happy Monday.
The Asian/Pacific markets closed mostly up. China, Singapore and South Korea each rallied more than 1%. Europe is currently up across the board. Only Austria (up 1.9%) is up more than 1%. Futures here in the States point towards a flat open for the cash market.

The dollar is down. Oil and Copper are up. Gold and silver are up.
I don’t have anything to add to the comments I made over the weekend in the Index Report and Video I posted Sunday morning. Forget back and forth movement, the market is just going up and up and up. Every dip gets bought. Every gap down gets bought. The S&P has moved up 19 of 24 days. When the market gets in this type of mood, when the market has a one-track mind, day-to-day indicators do not work. Everything gets ignored; prices just keep grinding higher. That’s what been happening. I would not fight it, but at the same time I would not assume it will continue uninterrupted. Sooner or later a pullback will materialize, and when it doesn’t I expect it to be relatively short-lived. The indicators are telling me higher prices will follow after a rest.
A few other things…
Earnings season is here. GOOG serves as a reminder to not hold into an earnings report no matter how strong the company or stock is.
We have an FOMC meeting Wednesday. I think it’s an irrelevant event, but as always the media will be fixated on it, so trading will slow down ahead of the announcement.
I remain cautiously bullish in the near term and bullish in the intermediate term. More after the open.
headlines at Yahoo Finance
headlines at MarketWatch
today’s upgrades/downgrades
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Jan 23)”

  1. QQQ continuing break out. At some pt will retest break out levels, Feb can be a neck snapper for the techs.
    Shanghai closed for the week but showing some buying strength.
    Good luck.

  2. I’d like to share an EW perspective, as it coincides with Jason’s and Raymond’s comments. Last week, I mentioned that the SPX breach of 1310 put the “ending diagonal” pattern in question and left open the wave 3 (of larger wave C) “extension” idea. The “ending diagonal” targeted 1325+/- 5 points as the end of larger wave C but a wave 3 extension pointed to a target of 1370 (the May high). Today’s continuation rally seems to confirm the extended wave 3 count with 1320-1330 as a possible wave 3 target to be followed by a wave 4 pullback with the 5th wave advance to follow, completing larger wave C.
    Raymond commented last week about the NDX breakout and its implications. No one, IMO, can objectively deny this bullish trend. How to trade it (daytrade, swingtrade etc) is an individual matter based on one’s technical indicators, etc. I continue to look for signs of resistance and reversal to complete wave 3 (based on my technical analysis),e.g. this past FRI I attempted the short side and quickly covered when 1309 wasn’t breached on the downside. Good luck to all.

  3. Yup, heard from my cycle-pathic friends this weekend. They are seeing the completion of a wave 5 coming up. We are overextended and due for a pullback.

  4. SPX is finding support (intraday at least) around FRI’s low.So far, we may be looking at an impulsive move down, either completed or in need of a little more downside. A rally later today/tomorrow could provide a low risk short entry for a larger correction later this week, which I would view as a wave 4 correction.

  7. Regardless all out BVSN ~56k profit 3wk hold 😉
    There are other opportunities. Look for technically strong stocks with backing fundamentals.
    Good luck

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