Before the Open (Feb 8)

Posted on by Jason Leavitt

Good morning. Happy Wednesday.
The Asian/Pacific markets closed up across the board. China and Taiwan rallied better than 2%; Hong Kong, Japan and South Korea moved up at least 1%. Europe is currently posting across-the-board gains led by Austria, Amsterdam and Norway. Futures here in the States point towards a positive open for the cash market.
The dollar is down slightly. Oil and copper are up. Gold and silver are up slightly.
The market actually dropped yesterday for about 35 min (lol). Then it rallied and closed near its highs. It has a mind of its own. It wants to move up, and it’s best not to get in its way. And why would you? We’ve had many very good set ups to trade. Money is rotating among the groups. There are obvious out-performers, so this market favors a stock picker as opposed to someone who just wishes to match the indexes. Other than a couple over-extended indicators (which are just temporary), there’s no reason to be anything but long.
When the market corrects, I’ll give some profits back and then head to the sidelines. That’s the way it goes. You can’t nail a 2-month trend and pick a top exactly.
All I can tell you is to stay long and stay on your toes. Take profits when it’s appropriate and roll money into newer positions that have great potential. Stay disciplined. 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 (Feb 8)”

  1. Brian – I saw your post late yesterday. I don’t see an ending diagonal(no wave overlap). The action in SPX since 1300 (where it can now be strongly argued that it was a typical wave 4 pullback support level) appears to be wave 5 of C in progress. I note that Jason mentioned awhile back that he was looking at 1350 as a potential target. We’re there! What can you say? The trend’s up and I’m still thinking 1375ish is more and more a realistic target. Having said that, IMO, the higher we go without a more meaningful pullback the more likely we get a sudden reversal that declines rapidly so it’s dangerous at his time and level – long or short.
    Your comments about EW as a technical trading tool in real time is a common complaint. As I’ve said before, EW has to be used in conjunction with other technical indicators. There’s no holy grail, which is why I’ve said that $$ management is the most important thing regardless of what technical tools a trader favors.

  2. Brian – I forgot to add that I like your interpretation of a possible wave 4 still in progress, i.e. I can see wave a at 1300, wave b possibly completing at 1350ish to be followed by wave c down to 1300ish =/- 10 pts for a “flat” wave 4 correction.

    1. Pete, Thanks for your comments. I see your point regarding the lack of overlap. I’d like to count that we are in 5 of C, but I don’t always get what I want.

  11. no chance to short –pos after hours cisco earnings report
    but look at the ndx100—its at the 1.27 fib that normally will contain a overlap
    corrective pattern
    ndx 2548-50 and a nice strike for a opts hedgie to short

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