Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets suffered stiff losses. Hong Kong dropped 3%; Australia, China, India, Indonesia, Japan, Singapore, South Korea and Taiwan dropped more than 1%. Europe is currently doing no better. Greece is down over 7%, Austria almost 5%, France, Amsterdam and Norway more than 2%, Germany, Stockholm, Switzerland, London and the Czech Republic more than 1%. Futures here in the States point towards a massive gap down open for the cash market.
The dollar is up. Oil and copper are getting clobbered. Gold and silver are down.
I don’t have anything new to add to my weekend report I posted yesterday. I don’t like this market. Whether it’s the declining economic numbers, news flow from Europe or weak technical picture, I don’t like what I see.
Spanish 10-year yields moved up all last week and are now near 7.5%.
Greece leaders are set to announce several billion euros worth of budget cuts before officials from the European Commission, ECB and IMF arrive this week.
Greece’s situation isn’t much different than the US Great Depression in the 1930’s. Spain isn’t far behind.
China’s CNOOC is purchasing Canadian oil & gas firm Nexen.
NRG Energy is acquiring GenOn Energy.
Two weeks ago I did a video highlighting some negative divergences I did not like. Those divergence remain in place, and a few more have popped up. No matter how I look at the market, I don’t like what I see, yet the S&P made a new higher high last Thursday. It’s as if the US markets don’t care what’s going on in the world, it’s as if investors assume the market will move up because this is an election year. It’s not wise to fight the movement; it’s also not wise to be completely oblivious to what’s going on in the world. When the market drops, it won’t give you a second chance to get out. It’ll just drop and drop and drop. Again, there will be no second chances.
I’ve been conservative for a couple weeks. That has meant smaller position sizes and quicker exits. Trailing stops are out. You gotta take profits when you have them. Swinging for singles has been the only way to go. 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 (Jul 23)”
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good post Jason. I would also not count on the fed. It wouldn’t look good for us to print
while the euro countries can’t.
it looks like we’ll gap down below the 50 and 20 so the first speed bump would be
the quacks 200ema @ 2843. we’ll see how bad this may get there
http://stockcharts.com/h-sc/ui?s=$COMPQ&p=D&yr=0&mn=11&dy=0&id=p17036606078&a=77837455&listNum=2
We are approching the point where governments will print money indiscriminately (I fear). Having sold gold and silver is some insurance. Actually, we are watching the moment of realism
when the EU admits it can not do what it hoped. Then it is the US Congress which can get real, if they remember how. If they don’t is it a long and hard second half.
It is time to use cash, lots of it.
if we try to bounce, shorts like to ambush at the 20ema 2903-6
drag it out you bastards. our congress and our government is a laughing stock of the world
but our fukin fed can sure manipulate the sht out of what is supposed to be a free market
ACI bounced 5% from the low this morning. it’s 1 1/2 % above fridays close.
dow is still down 130. this increases the chance aci has bottomed.
if you sold coal it may have been at the bottom
ACI may be making a public announcement friday
AMAT was down 3% this morning and came all the way back also
the 200ema at 2843 is also the neckline and has held thus far
sold ACI 6.40. 8% bounce today
bought some back 6.26 after hrs. incredible
Yes it does not look good for the longs. I was listening to Bob Brinker yesterday. Even though the market is down he does not recommend adding new monies at this level and Bob likes to call bottoms and has done well.
Tax law changes could spur some selling.
Paul