{"id":4838,"date":"2011-09-09T07:25:37","date_gmt":"2011-09-09T12:25:37","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4838"},"modified":"2011-09-09T07:25:37","modified_gmt":"2011-09-09T12:25:37","slug":"before-the-open-sep-9-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4838","title":{"rendered":"Before the Open (Sep 9)"},"content":{"rendered":"

Good morning. Happy Friday.<\/span>
\nThe Asian\/Pacific markets closed mostly down. India, Singapore and South Korea lost more than 1%. Europe is currently down across the board. Belgium, France, Germany and Stockholm are down more than 1%. Futures here in the States point towards a weakish open for the cash market. <\/span>
\nLet’s keep things simple here. The overall trend is down. To reverse this the market needs to rally big to invalidate the bearish rectangle pattern. Or it can simply keep moving sideways in which case the rectangle will morph into a neutral range. Until one of these two happens, I’ll consider the current movement to be a consolidation pattern within a downtrend. Rallies can be sold and shorted, and then it’s the bulls job to defend their stance when the lows of the pattern are approached. <\/span>
\nRight now the S&P’s range is approx. 1150-1250. With yesterday’s close at 1185, we’re a little below the midpoint. Shorting the top of the range is easy because you risk a little for lots of downside potential. Buying a visit to the low comes with a little more risk but the risk\/reward is still favorable. Entering positions here near the middle is more of a gamble…especially since day to day movement hinges on whatever major news just came out. <\/span>
\nHere’s the 60-min chart. Despite the gaps and news, the pattern is pretty. It pays to back up and see the bigger picture…even if you mostly focus on short term charts. <\/span>
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\nBe flexible. Don’t over trade. Don’t churn your account. More after the open.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a><\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
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