Good morning. Happy Wednesday.
The Asian/Pacific markets closed down across the board. Australia, Hong Kong, Indonesia, Japan, Singapore, South Korea and Taiwan all dropped more than 1%. Europe is currently down across the board. France is down 2%; Austria, Belgium, Germany, Norway, Stockholm, London and Greece are down more than 1%. Futures here in the States point towards a big gap down open for the cash market.
The dollar is up. Oil and copper are down and at new lows. Gold and silver are down.
Germany sold 2-year bonds at 0.07%. Wow.
France has become an attractive place to invest. Their 10-year yields are 2.78% (much higher than Germany) and of course France is in better shape than Italy and Spain.
Consumer confidence hit its lowest level since 1996.
Here in the States we’ll get a couple housing numbers 30 min after the open and then crude inventories.
There’s a definite lack of news out, so let’s talk technicals.
The market was on a long losing streak. Then it bounced Monday, but volume was light. Yesterday it was strong early but then sold off most of the day. Today’s open will be well below yesterday’s low and pretty close to Monday’s open. So we got one miserable up day after being deeply oversold? Is that it? Or is this just a test of the recent low before the real move up begins?
The reality is Europe still rules. Regardless of how good or bad the charts look, good or bad news from Greece can quickly induce a big move very quickly. This makes the current environment tricky. The trend is down, the path of least resistance is down, sentiment is down. But good news can quickly cause a big short squeeze. We made some good money going short the last couple weeks, and it’s time to take a more defensive stance. In many cases it’s too late to go short, and only select longs can be taken with tight stops.
Hopefully we get some sort of set up soon…either a bounce that can be shorted…sideways movement that will define support and resistance…or a lower low followed by a big move. We need the market to show its cards before we do anything in the near 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 (May 23)”
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You have a great perception of the market Jason. I appreciate your work
sold the ACI I bought this morning at 6.95 for 7.20 and 7.29. 20 min. shorts scared by something
yesterday I bought it at 7.07 and 6.95 and it went up so fast, by the time I hit the sell button it was already 7.38, then by the time I reset another sell market it was 7.49. Man it’s a mover. That short interest is rocket fuel
Since Aus is out spanking Crocs instead of Bulls and it’s May and I don’t see any real support until 1250 baring any really good news like Neil being elected Miss Congeniality I don’t see the market going up.
some kind of agreement to save the greeks out of the speedo crowd would be an ace
Greeks in speedos >>>> street slang for austerity.
hahaha slang for sling
taz would you put in an order errr… prayer for a retest wave to 1295 please? call little peter and the wino if you need too
I thought I would want her at 7.07, but when she got here she looked like a whore. 6.91 would be prettier
kick greese out kick germany out. I bet they disolve the euro and all 17 countries are setting prices for their currencies right now
…and the sheep peer cautiously out of the cave. get the chipper fired up
Do Gods work spread hope and happiness take their fear and reality. open arms all around
Gods work?
yes spread hope and happiness. take away your fear. Gods work
Is this a career move?
I accumulate when people are afraid and I take their shares, then when they are happy I distribute them to spread the joy.
as a imortal being the great bull market of the century is about to begin
but of course if greece defaults the great ponsi of the millenia will take the french german banks and thus the usa banks and the contagin will effect the whole gallacy
then i will short some bull
that does sound like a lot of bull taz
“The girls get prettier at closing time” Not tonight. I’m flat. Later
later