Before the Open (Aug 26)

Posted on by Jason Leavitt

Good morning. Happy Monday. Hope you had a nice weekend.
The Asian/Pacific markets closed mostly up. China rallied almost 2%; South Korea also did well. Indonesia fell 1.2%. Europe is currently mostly down. Italy is down 2.5% Austria, France, Amsterdam and Spain are also down noticably. There are no big winners. Futures here in the States point towards a down open for the cash market.

The dollar is up. Oil and copper are down. Gold and silver are down.
The market snapped its 2-week losing streak last week but is still down a bunch for the month. Volume was light, and the intraday ranges were smaller than normal.
The picture right now is pretty much middle of the road. The indexes are in no-man’s land between a thin area overhead that was created two weeks ago by a big gap down and sell-off and thin space below due to the market’s vertical July rally. The indicators are mixed. Some have hit extremes and have reversed; others are still moving in the bears’ direction. Charts of individual stocks are messy. Gold and silver look great; otherwise very few charts are setting up in tradable patterns.
Between the indexes being neutral, the indicators not all being on the same page and not having many good set ups to play in the first place, now is not a time to be aggressive. It’s also the last week of August, and not all traders are finished with their summer vacations.
Stock headlines from barchart.com…
Raytheon (RTN +1.30%) was downgraded to “Hold” from “Buy” at Stifel due to valuation.
Amgen (AMGN -0.65%) was upgraded to “Overweight” from “Neutral” at Piper Jaffray.
Dollar General (DG -0.72%) and Wal-Mart (WMT -0.03%) should be bought at current levels, according to Citigroup.
Aeropostale (ARO -20.22%) was upgraded to “Hold” from “Sell” at Brean Capital due to valuation.
Health Net (HNT +0.34%) was upgraded to “Positive” from “Neutral” at Susquehanna who also raised their price target on the stock to $40 from $35.
Hasbro (HAS +1.88%) was upgraded to “Buy” from “Sell” at Citigroup who also raised their price target on the stock to $53 from $40.
Family Dollar (FDO -0.40%) was downgraded to “Hold” from “Buy” at Deutsche Bank.
Big Lots (BIG -0.74%) was upgraded to “Neutral” from “Underweight” at JPMorgan.
Tyson Foods (TSN +0.25%) was downgraded to “Neutral” from “Buy” at BofA/Merrill.
Boeing (BA +0.32%) was awarded a multi-year government contract worth $904.42 million for 36 new Block III Apache Helicopters for the Republic of Korea.
Earnings and Economic Numbers from seekingalpha.com…
Today’s economic calendar:
8:30 Durable Goods
10:30 Dallas Fed Manufacturing Outlook
Notable earnings before today’s open: QIHU
Notable earnings after today’s close: none
Other…
today’s upgrades/downgrades from briefing.com
this week’s Earnings
this week’s Economic Numbers

0 thoughts on “Before the Open (Aug 26)”

  1. Durable goods crash = -8%. The administration will lob Cruise missiles into somewhere in Syria in the hope it will kill anyone using poison gas. Another example of precision US foreign policy. Having lost Eqypt to free elections they are hoping to turn the east end of the Med into a free for all, except it is not free. The market will not like this. The end of summer is messy, but this bad? My puts are in the money and I am slowly harvesting, and adding. Can’t wait until the traders come back, they will show us what to do.

  3. Levels to watch: SPX 1670. If we get thru there, then next level is 1680. Since it’s an index, don’t put too fine of a point on it. Allow some room. If we can’t get thru either, and instead head back down, strongest area of support is SPX 1630.

  5. neal u dont know what a daytrader is
    a daytrader cares only about the intraday trend and no other
    with no predicted targets from a day chart or any other bias
    uses only intraday live indicators and intraday piviots
    follows a 2 minute tick indicator
    AND ABOVE ALL HAS THE MIND SET OF A SNIPPER/SCALPER
    that means a few minutes to a few hours in/out trade
    if u cant saticfy those basics you are not a day trader,but instead are a long term trader trying to guess the intraday
    yes its all mind set and there is no one currently posting except myself that is a daytrader
    HOWEVER 4 DAYTRADERS THAT WILL PRODUCE YOU THEIR TRACK RECORDS ARE—
    DEAD CATS -GRUESOME AND AWESOME –TEDDY BEAR—FOROUSIOS BIG BEAR AND FAT BULL
    obviousely as cheif crazy bear and head of the master bear tech analysists assoc,i am forbiden to realease my track record

    1. however i do normally post my trades here
      and after closing my longs all at their respective resistence piviots
      and going short the world apart from london that is closed today
      i just went flat from a mini day crash –a 2 hour trade
      more down likly

Leave a Reply