Before the Open (May 14)

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets closed mostly down. Hong Kong and Indonesia dropped more than 1%. Europe is currently suffering stiff, across-the-board losses. Greece is down 5%, Austria 3.2%, Belgium, France, Germany, Amsterdam, Stockholm and London more than 2%, and Norway, Switzerland and the Czech Republic more than 1%. Futures here in the States point towards a big gap down for the cash market.

The dollar is up slightly. Oil and copoer are each down about 2%. Gold and silver are down more than 1%.
Greece remains the headline story. Will they accept another round of bailout money? Will they leave the Euro? Parliament is split, and that means uncertainty.
Italy and Spain’s borrowing costs continue to rise.
China cut its reserve requirement by 50 basis points over the weekend. This enables banks to lend out a little more than before. It’ll help boost their economy but offers a warning their slowdown may be steeper than first thought…after all, why would they have to resort to such measures.
Indian inflation unexpectedly increased to 7.23% – this could limit their ability to cut rates.
Supposedly 3 execs at JP Morgan will be stepping down after costing the company $2 billion. Bloomberg says the entire London staff (where the loss took place) could be dismissed. Personally I think the CEO should be stepping down too.
Yahoo’s CEO is losing his job. Lieing about whether he earned computer science degree 30 years ago is the reason.
Otherwise I don’t have anything to add to my comments I made over the weekend in my weekly report. As I stated, the bulls don’t have much wiggle room here. Heading into last week they had a little cushion before hitting support. Now they don’t. The S&P will open today near the key 1340 level, and many breadth indicators are pointing down but are not at washout levels. The bulls were able to push prices up intraday a couple times last week, but the overall path of least resistance never changed from being down. Don’t fight it. 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 (May 14)

    1. in other words cnbc knows damn well whats going on. the fact they don’t say so proves they’re just a bunch of used car or insurance sellsmen

      1. They’re ventriloquists
        WIKI RIP:Originally, ventriloquism was a religious practice. The name comes from the Latin for to speak from the stomach, i.e. venter (belly) and loqui (speak).[1] The Greeks called this gastromancy (Greek: εγγαστριμυθία). The noises produced by the stomach were thought to be the voices of the unliving, who took up residence in the stomach of the ventriloquist. The ventriloquist would then interpret the sounds, as they were thought to be able to speak to the dead, as well as foretell the future. One of the earliest recorded group of prophets to utilise this technique was the Pythia, the priestess at the temple of Apollo in Delphi, who acted as the conduit for the Delphic Oracle.

  1. ACI marching back and forth pretty well sold and bought it several times this morning.
    good 3 & 4% moves.
    AA pays a 3% div. for holders at the close today. should do a gradual climb.
    AMAT & BRCD

  2. now for you e wavers. I may see a blah of blah of blah. I’m waiting to see if it goes down further to 1305 then it may go down further or come back up, but if it goes up to 1360, it may go higher or come back down

    1. waves 2 and 4 are very upredicable and should only be traded by daytraders like urself ,russ
      as a impusive person ,i prefer the impulsive bear
      can u arrange a break up of the euro for next week for me please

  3. i need everybodies help
    i have to go down to sydney on business this week
    and whilst i will have my laptop with me i wont trade with out my full indicators in front of me
    next monday i want to be able to short some nice bull
    can anyone lend greece/spain some money
    or take some nice puts out to force the market makers to push the market up for opts ex
    good trading everyone

    1. @AussieJS
      We have 3 options, I hope one or more hit this week.
      ~ Europe (Germany) says they are altrusitic and love man kind and tell the EU they will suckle the PIGS forever. If you don’t know what PIGS is look it up.
      ~ The US Government gives cash to GS or MS (aka the plunge protection team) to prop the market back up.
      ~ Uncle Ben fires up the printing press and hands the cash to BAC and WF and tells them to buy.
      We’re in a bad state JPM is off duty this week. I hate GS but I need them now. If Bear Stearns and Lehman Brothers were around we could count on them but GS made sure they went down (short sold them, and bought insurance on them which AIG had to pay (and We paid)).

      1. oil is down because usd is up because euro is down. also fed raised margin on commodities to stop inflation and also get gasoline down to help the economy

          1. its a war isnt it. investor class that owns exxon vs the working class that has to drive to work. time for a REVOLUTION!!!

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