{"id":4362,"date":"2011-05-20T07:26:55","date_gmt":"2011-05-20T12:26:55","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4362"},"modified":"2011-05-20T07:26:55","modified_gmt":"2011-05-20T12:26:55","slug":"before-the-open-may-20-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4362","title":{"rendered":"Before the Open (May 20)"},"content":{"rendered":"

Good morning. Happy Friday.<\/span>
\nThe Asian\/Pacific markets closed mixed. Only India (up 1%) was a significant mover. Europe is currently mixed – no big movers there. Futures here in the States point towards a down open for the cash market.<\/span>
\nThe market moved down Mon and Tues and then up Wed and Thurs. The up days were bigger than the down days, so we have a gain for the week so far (exactly what was needed per the open-interest data posted Mon), but volume has dropped off the last two days. The indexes are in decent shape but not great shape. Overall I’d consider the long trend to be up, but short term things are still cloudy.<\/span>
\nHere’s the SPX daily. There’s nothing wrong with this chart. We got a breakout at 1340 and now a falling wedge.<\/span>
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\nYesterday LinkedIn (LNKD) did great on its first day of trading, but as I said at the time, they got screwed out of a lot of money while the bankers and all their friends are laughing all the way to the bank. There’s some evidence out there that a hot IPO market is not a good sign for the market, that market tops tend to form around the same time. This is partly due to the bankers having a pretty good pulse on Wall St. and advising their clients to go public at the exact right time. It’s also due to the increased float of stock – same demand with more supply pushes prices down. I don’t think LNKD is big enough to mess up the supply\/demand equilibrium too much, but if a couple other companies (Facebook, Twitter, Groupon, Zynga) see LinkedIn’s success and move their IPO dates forward, I’d be very worried.<\/span>
\nMore after the open.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nyesterday’s sector performance<\/a><\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n