Before the Open (Feb 28)

Posted on by Jason Leavitt

Good morning. Happy Thursday.
The Asian/Pacific markets closed mostly up. India drop 1.5%; China, Hong Kong and Japan rallied 2% or more, and Australia, Indonesia, New Zealand and South Korea rallied more than 1%. Europe is currently up across the board. Austria, Belgium, Germany, Stockholm, Switzerland, Greece and the Czech Republic are doing well. Futures here in the States point towards a positive open for the cash market.

The dollar is flat. Oil is flat, copper up. Gold is down, silver up.
Last week when the market started to drop, I stated I would be very surprised if the market just dropped without testing the high at least one time. Here we are a week later. The high is not being tested yet, but the action of the last two days tells us the bulls are not going to give up easily. Tops take time to form, and we don’t even know if a top is forming. There will be lots of up and down movement, lots of sudden reversals, lots of action that makes no sense. The market will shake out as many market participants as possible in both directions before officially starting its next leg. That’s just the way things work. The invisible hand of the market wants to make sure as few people as possible participate.
In the near term anything goes. We could get another trend up day and a sudden reversal down. On an intermediate term basis, the evidence points towards a top forming. But a top could take two months to form, and there’s no guarantee it’ll be anything more than a 2-month drop that takes the S&P down 150-200 points. This would be a playable move but far from the catastrophe some bears are expect.
This weekend I’ll do a State of the Market video and give an overview of what I see.
If you’re a day trader, have fun. The increased volatility and expanded ranges present more opportunities than those tiny ranges we got in January. If you’re a swing trader, be careful. You can’t give positions time and space to play out because you’re very likely to get stopped out with the intraday fluctuations. You must shoot for singles – be content with small gains. 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 (Feb 28)”

  2. Howard is still around–still occasionaly get emails from him –but he may have gone to his favourite elliott wave site
    the market is unusally quite atm ,so i want to have a HYSTERICAL RANT
    THE MARSIANS HAVE INVADED EARTH
    actually they have been on earth for a while,they use their black box computerized vehicles
    to control world markets and create volitility,they can see and front run market orders
    run stops both ways,they are responsible for 70 % dailly volume and run on presure
    when no buyers they push market down–visa versa
    they control the opts/derivitives markets and the marsians photo and spaceships are on the front of every usd 1 dollars note
    only my highly advanced tick indicator can locate them and my supperiour snipping /scalping
    daytrader techniques eliminate them
    atm we need as many daytrading snippers to fight the marsians
    Jason –u are right its only a datraders market atm–go the volitility
    Neal–u are to be commended on ur dow 14000 call
    but as far as being a no margin investor on a buy /hold/prey stratagy–well each to their own
    but it only takes a few high parcel large daytrader bets on a 100 to one margin,with quick in/out snipper action to beat
    of course they are high risk and not for everyone
    oops markets taking off back to my snipper screan

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