{"id":4848,"date":"2011-09-13T07:19:00","date_gmt":"2011-09-13T12:19:00","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4848"},"modified":"2011-09-13T07:19:00","modified_gmt":"2011-09-13T12:19:00","slug":"before-the-open-sep-13-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4848","title":{"rendered":"Before the Open (Sep 13)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mixed and for a change were relatively quiet. Europe is currently mixed; Germany is up 1.4%. Futures here in the States are all over the place. They were flat…then they dropped vertically…now they’re climbing back. There’ll be much more movement between the time I write this and the opening bell.
\n<\/span>
\nFrom a trading perspective yesterday was a tricky day for the bears. The short term trend was down, and the indexes had closed right at support. Ideally you’d want a flat open or perhaps a gap up open. Instead we got an emotionally based gap down which opened many stocks below support. This is the worst case scenario because, with the S&P down about 60 off the previous week’s high, it’s tough to chase shorts to the downside. If you chase and the market bounces, you got a horrible entry. If you don’t chase and the market falls apart, you sit and watch. At the end of the day, the indexes plus many stocks charts had taken out support, but thanks to a late-day rally, they closed either above support or right at support. The “textbook” says a trendline must be taken out by 3% to be confirmed. Not only did we not get that, in most cases we didn’t even get a close below support. The jury is out. The overall trend is down, and I’m confident lower prices will be seen, but short term anything goes. We’ve alreay seen the S&P rally hard a couple times the last month; it could happen again.<\/span>
\nSeveral groups I highlighted over the weekend did well yesterday. <\/span>
\nSemis being one have upside potential to around 390 before running into the next stiff resistance level (provided horizontal resistance is taken out).<\/span>
\n\"\"
\nOil also did very well. Since energy is a good % of the indexes, the bulls want the bear wedge to be invalidated.<\/span>
\n\"\"
\nThings are tricky right here. Support was taken out, but we didn’t get any follow through and in many cases we got a close back within the patterns. I don’t think the market just sits here. Be flexible. Be on your toes.<\/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>
\n