{"id":4080,"date":"2011-03-11T08:36:38","date_gmt":"2011-03-11T13:36:38","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4080"},"modified":"2011-03-11T08:36:38","modified_gmt":"2011-03-11T13:36:38","slug":"before-the-open-mar-11-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4080","title":{"rendered":"Before the Open (Mar 11)"},"content":{"rendered":"

Good morning. Happy Friday.<\/span>
\nThe Asian\/Pacific markets closed down across-the-board. Almost every index dropped at least 1%. Europe is current down across-the-board. There are several 1% losers there too. Futures here in the States point towards a down open for the cash market but not nearly as down as one might expect considering the losses overseas.<\/span>
\nLooking at a bunch of charts last night, noting how many of them are broken, I’m going to go out on a limb and say it would take some very good news out of the Middle East to trump the extremely poor technicals. A few broken charts is fine because money rotates around the market, but when many charts in many groups are broken, there isn’t enough money at any given time fix them all at the same time. That means best case scenario is for some to get fixed while others lag and then the next group gets fixed and so on. This takes time which is why I’m thinking absent good news, the best case scenario going forward is flat trading. Worst case is obviously much worse.<\/span>
\nThe bulls have their backs against the wall right now. They either dig in and defend their turf or the game is over in the near term. There are too many broken charts for the market to reverse without great news trumping everything.<\/span>
\nAside from the many broken charts and indicators such as the Average True Range (ATR) moving up, the US dollar is bouncing too. It has mostly moved opposite the market over the last year (or has the market moved opposite the dollar?), so a move up adds more downside pressure to equities.<\/span>
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\nI’ve been in conservative mode for a couple weeks. As a swing trader who typically holds for a couple days or a several weeks, my goal is to take good set ups under favorable conditions and then let the charts play out. But the conditions haven’t been favorable, so I haven’t been very active. This could change now as my charts tell me even if the market bounces, the upside will be limited. 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>
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