{"id":3564,"date":"2010-10-06T07:31:43","date_gmt":"2010-10-06T12:31:43","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=3564"},"modified":"2010-10-06T07:31:43","modified_gmt":"2010-10-06T12:31:43","slug":"before-the-open-oct-6-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=3564","title":{"rendered":"Before the Open (Oct 6)"},"content":{"rendered":"

Good morning. Happy Wednesday.<\/span>
\nThe world is green. Every index in Asian\/Pacific closed up including several 1% winners. Every index in Europe is up – several 1% winners there too. Futures here in the States point towards a flat open for the cash market.<\/span>
\nTwo weeks of consolidation led half the market participants to believe a top was in place and a significant pullback in the works. The other half (me included) expected the intermediate term up trend to remain in place but perhaps a little weakness in the near term. The market surprised both groups by gapping up and rallying hard yesterday on strong volume. The market corrected with time, not price.<\/span>
\nI reiterate my belief the market will test its April highs this winter, and after yesterday’s strong day, it may be sooner rather than later. The S&P high was ~ 1220. That’s only 60 points above the current price. But let’s not get too giddy about the possibilities. <\/span>
\nIn my opinion there are two key drivers to the market movement right now: bonds and the US dollar. <\/span>
\nWhen money comes out of bonds, the market rallies. Here’s a chart which relates the two.<\/span>
\n\"\"
\nAnd when the dollar drops, the market rallies. Here’s a chart.<\/span>
\n\"\"
\nI’ll be watching both bonds and the dollar to confirm yesterday’s breakout. <\/span>
\nI posted a handful of long set ups on the Message Board last night. More after the open.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nthis week’s Earnings Reports<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n