Before the Open (May 31)

Posted on by Jason Leavitt

Good morning. Happy Thursday.
The Asian/Pacific markets closed with a bearish slant. Indonesia dropped 2.2% and Japan lost 1%. Europe is trading with an upward bias. Greece is up 3.8%, but Austria is down 1.5%. Futures here in the States point towards positive open for the cash market.

The dollar is down slightly. Oil is flat, copper is down slightly. Gold and silver are flat-to-down.
The market moved up nicely on Tuesday and closed close to a 2-week high. Then it gave everything back yesterday. The near term remains very unclear. Good news or no news from Europe sends prices up; bad news sends prices down. The intermediate term trend is down; the short term can go either way. This is not a time to take big chances. Conserve captial. Things need to be sorted out before you place big bets. This doesn’t mean you have to stop trading, it just means the near term can go either way, so you don’t want to be overly biased and you don’t want to be overly exposed to one side.
For what it’s worth, today is the day of May. Oil has suffered its worst monthly drop in three years…gold its worst in 13 years.
Graff Diamonds has pulled its IPO in Hong Kong – the third to be pulled this month.
Here in the States, Kayak is either pulling its IPO or delaying it. The company didn’t start their road show as previously planned.
Tomorrow we get the latest employment data.
From a technical standpoint, other than some oversold breadth indicators, there isn’t much for the bulls to cling to. The market needs some sort of resolution in Europe or the hostage situation that currently exists will continue to drag prices down.
Play it safe. That’s it for now. 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 31)”

  1. got the feeling we’re going to sit right here 2 pts above the open all day. cnbc will tell us traders are just waiting to see non farms payrolls tomorrow blah blah blah. good day to go to the store and avoid the first of the month crowd tomorrow

  2. From Bob Hunt
    The June S&P E-Mini S&P contract has fired 2 Day ROC Sell, Wide Range Downside Reversal, and 90-10 Low Continuation & Reversal signals for today’s trading. The 2 Day ROC Sell signal implies that today’s principal trade direction should be to the downside. The Wide Range Downside Reversal signal tells us that yesterday’s trading likely marked a significant short term turning point with more downside to follow. The 90-10 Low Continuation & Reversal signal tells us to look for morning follow through on the weak close, but to expect a likely reversal once the initial move has bottomed. Cycle Indicators (chart at right) appear as if a short term cyclical top has just been marked, and the larger trend is to lower prices. Odds favor further downside in early morning trade. Sell the break of yesterday’s 1308.00 low, or even earlier if price demonstrates weakness below the 1308.50 level of the Daily Pivot. But stand prepared to exit or even reverse if we get appropriate price reversal patterns and/or Oscillator Divergence near important support levels. Our Normal Low Range Projection level of 1295.50 or the Extended Low Range Projection level of 1285.40 would be likely areas for such a reversal to take place, as would a test and failure of yesterday’s low.

    2. and i bet you dont know what all that means RichE,BUT WE COULD BE GETING A REVERSAL DAY
      remember our freind Neal,dared me to take his free Pattern Trapper course,some of their indicators are not bad ,of course you have to understand the lingo,but i was using piviot points and the tick ind long before that
      by the way u have been quite of late

      2. Correct! I don’t have a clue, was hoping someone would translate.
        As to being quiet, hopefully it’s just a phase and thanks for asking it’s nice to know ones missed.

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