Before the Open (Sep 4)

Posted on by Jason Leavitt

Good morning. Happy Tuesday. Hope you enjoyed your extra day off.
The Asian/Pacific markets closed mostly down, but no index moved more than 1%. Europe is currently mostly down. Greece is up 1.1%, and Switzerland and London are down 1%. Futures here in the States are flat.

The dollar is flat. Oil and copper are up. Gold and silver are up slightly.
We now enter September – by far the weakest month of the year. August was pretty slow. Volume was light; the intraday ranges were small; there was a definite lack of volatility and energy. As traders, we don’t care which way the market moves, as long as it moves. Hopefully a new month will bring a new personality…perhaps not today or tomorrow (often the slow August trading extends beyond Labor Day for a few days), but certainly by the end of the week or next week.
The good news is: the trend is up…most of the indexes are consolidating in continuation patterns…there are quite a few bullish patterns forming among individual stocks…the market has done a good job absorbing the news
The bad news is: the indexes have rallied for three straight months and most are near a previous high (it’s hard to build gains on top of gains)…China is still sucking wind…nothing in Europe has been solved…the US is arguably the strongest major market in the world (other markets need to catch up or the US may be pulled down)…September is the weaknest month of the year…the market has higher expectations of QE3, so if it doesn’t get it???…
Overall, the trend is up, but headwinds loom. Be on your toes. The indexes could bust through the highs and squeeze the heck out of the shorts who’ve grown in numbers or get rejected and trap the bulls.
ECB president Draghi said he’s comfortable buying 3-year government bonds.
Moody’s cut the outlook of the EU to negative
The Reserve Bank of Australia kept its benchmark interest rate at 3.5%.
VRX is buying MRX.
The Domocratic National Convention starts tonight.
Hopefully a new personality emerges soon. 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 (Sep 4)”

  1. there has been a brand new creature created through out the known universe
    it is called a BULLYBEAR and comes from a gallacy far far away
    both my pet bears–teddy and awesome bear have now grown gigantic horns and are dispaying
    psycho pathic tendencies to gouge those timid fed bulls
    fundermentally this psycho behaviour will ensure we get increased VOLITILITY in the top hat
    before this corrective phase of HOPE is over
    go the bulls
    go the bears

  2. intraday the world markets are rather predictable
    we could be putting in a double bottom over the past few days,but we wont have a blow off top
    more likely a distributive violent top
    europe markets and the ftse are telling us they have lost faith in the ecb and dragonhi buying of 3 year bonds is just hot air and is not enough
    wall street is in a dill ema in that it knows that who ever wall st puts in as president
    ,that the financial cliff will happen on 1/1/2013 as the automatic budget cuts,will force even greater AUSTERITY than greace
    the australian govt is just as moronic as all others as the imposing of our carbon and mining tax is forcing gigantic inflation as the rba holds interest rates high to protect the oz banks and our economy SINKS

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