{"id":4857,"date":"2011-09-16T07:37:19","date_gmt":"2011-09-16T12:37:19","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4857"},"modified":"2011-09-16T07:37:19","modified_gmt":"2011-09-16T12:37:19","slug":"before-the-open-sep-16-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4857","title":{"rendered":"Before the Open (Sep 16)"},"content":{"rendered":"

Good morning. Happy Friday. Happy Quad Witching Day.<\/span>
\nThe Asian\/Pacific markets closed with across-the-board gains. South Korea rallied almost 4%, and Japan and Taiwan moved up better than 2%. Europe is currently mostly up. Germany is the sole 1% winner. Futures here in the States point towards a moderate gap down for the cash market.<\/span>
\nNFLX is getting crushed in pre market trading. Some of the losses are due to them losing many customers after they raised prices a few months ago, but it’s also due to competition. The technology to stream video is well within the grasp of many tech companies. Funny how business works. When NFLX only physically mailed out DVDs, nobody wanted to get into the business, but as soon as they started streaming video, they attracted competition. Cannibalizing their own business (which is absolutely necessary) has had unintended consequences.<\/span>
\nRIMM is also getting hit hard before the open. No surprise there either. Funny how tech works. You’re a leader one day, and then a revolutionary change is made (as opposed to an incremental evolutionary change), and you get crushed. Every tech company out there needs to pay attention. No position is safe.<\/span>
\nThe market…we’re in a 4-day win streak – the longest since June. The bearish rectangles forming on the indexes are in tact, but they’re in the process of getting timed out because they’re too big. These patterns will morph into something else – perhaps just a range. The S&P has closed above last week’s high (albeit not by much), but there’s still work to be done. The mid August high is just overhead and of course the late Aug high near 1230. Here’s the 30-min chart. I still consider the falling wedge to be in play.<\/span>
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\nToday is quad witching. I think these days are over-rated. Traders have had plenty of time to square off positions, but you never know. An end of day run is not out of the question if traders start positioning themselves for the next option or futures cycles. 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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