Before the Open (Sep 14)

Posted on by Jason Leavitt

Good morning. Happy Friday.
The Asian/Pacific markets closed up across the board. Hong Kong, India, Indonesia, South Korea and Taiwan rallied more than 2%; Australia, Japan and Singapore more than 1%. Europe is currently up across the board. Austria is up more than 3%; France, Norway, Stockholm, the Czech Republic and Greece more than 2%; Belgium, Germany, Amsterdam and London more than 1%. Futures here in the States point towards a moderate gap up for the cash market.

The dollar is down. Oil and copper are up. Gold is up, silver is down.
The Fed annouced QE3 yesterday, and the market surged. All the indexes are now at new highs, and the Russell 2000 isn’t far from its all-time high. That’s the bottom line. If you hate Bernanke and you view the stimulus as not being necessary and the additional debt we are incurring as being troublesome, that’s fine. Don’t let your attitude prevent you from making money. That’s pure stupidity. The fact is the trend has been up since early June, and although it hasn’t always been a smooth ride, there have been very few short set ups to be had and many good long set ups.
When the trend is up, you should be long or neutral. When the trend is down, you should be short or neutral. Trade what is, now what should be.
The market has a history giving back its post-Fed gains on the following day, so be on the look out for some profit taking…although this tendency has been weaker ever since the FOMC started issuing their announcement at 12:30 est instead of 2:15.
The FOMC was the last of the major market moving news items we’ve been tracking. Europe is going to get bailed out. The Fed is going to continue flooding the system with money. Again, even if you disagree with steps taken, don’t let it prevent you from making money. 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 14)”

  1. One must buy “things”: metals, Precious meta,food, wood & commodities in general. And one must suspect the the SP500 is a good hedge against the QE, which will inflate since it is the ethos that matters, not the Fed calculation. People now expect inflaton and it will come on that alone. Bonds, not good. Buying some EU stock indexs, Emerging markets, and energy. I will not trade individual stocks to avoid management problems. My buy is the 34/200 ema when the 34 is above 200.
    In the longer run this new leg is desperation since unwinding of the Fed balance sheet may prove to be impossibleto do during my life time and maybe never. That works, look at Japan.Not fun, but they go on.

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