Before the Open (Apr 18)

Good morning. Happy Wednesday.
The Asian/Pacific markets closed up across the board. China and Japan rallied 2%; Australia, Hong Kong, New Zealand and Malaysia rallied 1%. Europe is currently down across the board. Austria, France, Amsterdam and Stockholm are down more than 1%. Futures here in the States point towards a flat-to-down open for the cash market.

The dollar is up. Oil is flat; copper is down. Gold and silver are down.
The market put in a big up day yesterday and closed at its highest level since the unemployment data was released 1-1/2 weeks ago. Here’s an update of the 60-min SPX chart. Allowing for a little wiggle room, this chart has bearish implications, but a continuation of the move up right now would neutralize the chart and hint at a large range rather than a break of support followed by a rising wedge.

Yesterday INTC and IBM dropped after releasing earnings. Before today’s open they’re trading down 2.6% and 1.7% respectively.
When the week began there were very few good long set ups to be had and a nice basket of shorts to pick from. Now, two days later, charts of individual stocks have neutralized. There are some shorts and some longs and definitely no clear bias.
Things are not very clear in the near term. We’ve had some ups and down, and as of now, the market is unchanged over the last five weeks.
Play good defense. 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 (Apr 18)

  1. I vote for a range change, but the raising wedge is annoying.
    A political question if I may. Will Romney or Obama be better for the market? If the market needs another QE would Romney push the button?

  2. perhaps PeteM can ask his fed freinds
    Neal is taking his group on a tour of the fed and betting on qe3 for dow 14000
    imo we are in a topping process and wider distribution ranges are possible
    i dont see a one sided bet here or trend ,but a lot of up AND down
    maybe we have topped–maybe not
    naturally i am bias as wide ranges are what a daytrader needs

  3. AussieJS – I put a call in to Chuck Plosser at the Philly FED. As usual, he won’t talk with me unless it’s over a cheesesteak for lunch (on me, of course) by the Liberty Bell.
    Anyway, he’s hinting that QE3 could occur, but only on an SPX drop below 1100 before Labor Day. I’m not sure if he was kidding.

    1. Hi PeteM,
      is ur labour day sometime before the end may as because of the election ,the end of may may be the feds last chance
      1100 spx may make a nice broadening,jaws of death ending for the usa and is not far away–just a mere 250 points odd—now u know why i like being a bear–we have more fun than those somber bulls
      imo qe3 will happen when and if china says it can–ever seen unckle ben bowing to the chairman

      1. My crystal ball says; Obama will not fire up the QE3 T-shirt cannon. Obama will let the economy fall then ask Romney for solutions. Romney will only have business solutions. Government is not a business. Business solutions won’t work on government. When the VIX approaches Fahrenheit 451 (spontaneous combustion) Obama will save the day and be re-elected. It should be an exciting summer for you Aus.

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