{"id":4554,"date":"2011-07-01T07:23:54","date_gmt":"2011-07-01T12:23:54","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4554"},"modified":"2011-07-01T07:23:54","modified_gmt":"2011-07-01T12:23:54","slug":"before-the-open-jul-1-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4554","title":{"rendered":"Before the Open (Jul 1)"},"content":{"rendered":"

Good morning. Happy Friday. <\/span>
\nThe Asian\/Pacific markets closed mostly up – Hong Kong, Indonesia, South Korea and Taiwan rallied more than 1%. Europe is currently mixed – there are no standout winners or losers. Futures here in the States point towards a flat open for the cash market.
\n<\/span>
\nJune is in the books. The second quarter of 2011 is in the books. QE2 is over and done. Today should be a slow day because it’s summer and the day before a 3-day holiday weekend, but with the re-balancing of the Russell indexes complete and it being the first day of a new month, there could be a little movement the first hour or so today as traders and money managers square off positions etc.<\/span>
\nThe rally we’ve had this week is something we haven’t seen since the beginning of September. Nobody expected it which is one of the reason it could go so far in such a short period of time. But the easy money has now been made. Several good set ups were posted early in the week, but it’s too late to jump on those…new set ups need to emerge. Bouncing off support when many indicators are oversold isn’t hard. Besides the pent up demand, the bears no doubt were all-in and have had to cover. But here we are 5 days later…the bulls can’t depend on short covering to fuel a continuation of the rally. They also can’t depend on market-moving news from Europe (the Greece austerity plan will last 5 years, but as far as the US market goes, it’s a done deal). Volume hasn’t been great. Sooner or later (probably sooner) the market will rest. Then we need to see a surge in buying to “confirm” the newly formed short term uptrend. Failure to do so would hint at a summer of range bound prices.<\/span>
\nWhat happened over the last 4 days is not what happens right before the market falls apart, so I’m thinking we either get a summer rally (at best) or range bound trading (at worst). I think the odds of the market falling apart have declined a bunch. Have a great weekend if you’re not sticking around. Otherwise I’ll have more to say after the opening bell.<\/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>
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