Before the Open (Jul 18)

Posted on by Jason Leavitt

Good morning. Happy Wednsday.
The Asian/Pacific markets closed mixed, but the losers lost more than the winners. Hong Kong, South Korea and Taiwan each dropped more than 1%. Europe is currently mostly up, but only Greece (up 1.2%) has moved more than 1% from its unchanged level. Futures here in the States point towards a down open for the cash market.

The dollar is down. Oil can copper are down. Gold and silver are down.
Today we get round 2 of Bernanke speaking/testifying on Capital Hill. Yesterday Bernanke didn’t hint the Fed was planning on doing anything but he repeated that the Fed “is prepared to take further action as appropriate to promote stronger economic recovery.” Goldman Sachs says they expect the Fed to ease a small amount at the August or September meeting and take a bigger step in early 2013 after the election. I don’t know what they’d ease.
Greece leaders were not able to identify the 11.7 billion euros worth of austerity cuts for 2013 and 2014 that was necessary to received the latest rescue package. They’ll meet again next week.
INTC and YHOO had earnings after yesterday’s close. INTC cut its full year revenue forecast. Both are down premarket.
BAC reported better-than-expected earnings this morning. The stock is flat before the open.
AXP, IBM, QCOM and EBAY report after the close.
Here’s an update of the S&P daily chart. Higher highs and higher lows since the beginning of June remain in place. And considering last Friday’s big rally came on weak volume, it was nice to see follow through yesterday. Although I lean to the upside (because I have many more good long set ups than short set ups), I’m still being defensive. That means smaller position sizes and being quicker to take profits. I’m shooting for singles and an occasional double. No home runs right now. There are still too many headwinds. The condition of the market dictates our trading style. Don’t fight it. You can’t trade the same way month after month. You have to slightly alter your style based on what the market is offering.

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 (Jul 18)”

  1. Jason good post speaking about traders needing to be quick to evolve to what the market gives.
    not what one thinks it SHOULD do.
    the ws wolves are preying on the undecided reactionists.

          1. I’m buying the drinks. the shots on 7 would cost more than I will ever have I’m sure

  14. im a android and i dont discuss such things
    but i miss erin and mellisa to0000
    infact i miss cnbc
    being in the oz outback we dont get cnbc anymore
    today is ground hog day–the normal pump up for these particular after hours earnings reports
    then the big sell off–well for a day or so

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