{"id":4738,"date":"2011-08-09T07:31:57","date_gmt":"2011-08-09T12:31:57","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4738"},"modified":"2011-08-09T07:31:57","modified_gmt":"2011-08-09T12:31:57","slug":"before-the-open-aug-9-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4738","title":{"rendered":"Before the Open (Aug 9)"},"content":{"rendered":"

Good morning. Happy Tuesday. Happy Fed Day.<\/span>
\nThe Asian\/Pacific markets closed mostly down. Hong Kong last more than 5%; South Korea dropped more than 3%; Indonesia and New Zealand dropped close to 3%. Europe is currently mixed and with a bearish bias. Austria, Germany, Amsterdam and Switzerland are down more than 1%. Futures here in the States point towards a gap up for the cash market (S&P futures are 50 off their overnight low).<\/span>
\nThe dollar is down 0.5%. Gold is up; silver is down. Oil is down slightly and trading just under $81.<\/span>
\nI’m not sure what the Fed can do or say today that will help the market. Rates are already near 0.0%, and while QE1 helped boost the market, QE2 had a diminishing effect. Does Wall St. want QE3? If the pattern continues, QE3 would be a waste of money because it’ll have very little, if any, positive effect (except for an initial psychological boost). <\/span>
\nThere are lots of lessons to learn from the last two weeks. The main one being the concept that an oversold market can remain oversold for much longer than you think. The S&P was oversold 100 points ago. Anyone who tried to pick a bottom got run over. A bounce is coming, but too many people have been looking for a bounce – hence the delay. When it happens, it’ll either be very short lived with new lows to follow soon after, or it’ll last longer and go further than makes sense. It’s not going to be a perfect retracement back to a certain Fib number or back to previous support. That’s what everyone wants, so it’s not going to happen. <\/span>
\nMost of the time I don’t care about a Fed meeting. Today will be interesting purely from a spectator standpoint. There’s not much in the Fed’s tool box. What will they say to try and calm the selling? What do they think they’re role is here? We’ll have to wait to find out. <\/span>
\nBe nimble. Be flexible. Be open minded. 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