{"id":4071,"date":"2011-03-08T08:26:31","date_gmt":"2011-03-08T13:26:31","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4071"},"modified":"2011-03-08T08:26:31","modified_gmt":"2011-03-08T13:26:31","slug":"before-the-open-mar-8-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4071","title":{"rendered":"Before the Open (Mar 8)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly up. Hong Kong, India and Singapore each moved up more than 1%. Europe is currently mostly down. There are no standout winners or losers. Futures here in the States point towards a flat open for the cash market.<\/span>
\nYesterday and Friday combined for the second worst 2-day combo since Sept, and given the indexes are close to the lows of their ranges, there isn’t much room for error here. The next few days have the potential to be very telling. We’ll either get a clean breakdown, a breakdown that lures in the shorts and then a rally or a rally from the current level. I’d be a little surprised if the indexes remained range bound because of the surging volatility, expanding ranges and the great number of 1-sided days. We’ve also gotten breakdowns from many key stocks.<\/span>
\nBut who knows. As I’ve said a few times, if left alone, I think the market would break down (it probably would have already), but the market is not alone. The Fed is steadily pumping money into the system, and that money is finding its way into the stock market. I’m not complaining; it is what it is, and I’ve certainly made my share of profits the last six months riding the trend. But you have to wonder how long it can last. Eventually the weight of the market will be too big for the Fed to support. Do you trade based on what reasonably should happen, or do you trade in the direction the Fed wants the market to go? It’s not a comfortable question to answer because the Fed is a totally unknown entity. How do you trade off the unknown? 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