{"id":4386,"date":"2011-05-26T07:18:04","date_gmt":"2011-05-26T12:18:04","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4386"},"modified":"2011-05-26T07:18:04","modified_gmt":"2011-05-26T12:18:04","slug":"before-the-open-may-26-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4386","title":{"rendered":"Before the Open (May 26)"},"content":{"rendered":"

Good morning. Happy Thursday.<\/span>
\nThe Asian\/Pacific markets closed mostly up. Australia, India, Japan and S. Korea posted solid gains. Europe is currently mixed with a bullish slant; there are no standout winners or losers. Futures here in the States point towards a positive open for the cash market, but this could easily change at 8:30 EST when a ton of economic data is released.<\/span>
\nThe dollar is down. Gold, silver and oil are down too.<\/span>
\nOn Tuesday the market took out its low, but that didn’t induce selling. Then yesterday the market again took out its low, but that too didn’t induce selling. If the shorts are hoping the crossing of a threshold will suddenly induce lots of selling pressure, despite the 1-month trend down, we’re not there yet. Dips continue to get bought, so unless the bears shorted a couple weeks ago and used wide stops, they’ve been frustrated.<\/span>
\nI’m still of the opinion the short and intermediate term trends (the ones I trade) are down, and a mundane, light-volume drift up into the holiday weekend will be a gift. I’m not ready to short yet (actually buy those inverse ETFs), but I’m watching closely.<\/span>
\nHere’s the 30-min S&P chart. I have not changed the trendlines since the beginning of last week. The mid April gap up has been filled, and price continues to be contained. It’s entirely possible this falling rectangle pattern resolves up, but for now, my preference is to short a bounce. If shorting turns out to be a bad idea, no biggie. I switch gears and go long. <\/span>
\n\"\"
\nWhen the market drifts around on light volume right before a holiday, you can’t expect much follow through on stock trades. Keep that in mind the next two days. More 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