{"id":4932,"date":"2011-10-10T07:33:16","date_gmt":"2011-10-10T12:33:16","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4932"},"modified":"2011-10-10T07:33:16","modified_gmt":"2011-10-10T12:33:16","slug":"before-the-open-oct-10","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4932","title":{"rendered":"Before the Open (Oct 10)"},"content":{"rendered":"

Good morning. Happy Monday. Hope you had a nice weekend.<\/span>
\nThe Asian\/Pacific markets closed mixed, and there weren’t many standouts. India gained 2%; Singapore gained 1%. Europe is currently mostly up. Norway is up 2% and London 1% but Austria is down 3.7%. Futures here in the States point towards a large gap up open for the cash market.<\/span>
\nRight about now I’m glad I respected the bounce. Even though all the indexes moved below the bottom of the ranges, I covered my shorts as soon as the market started to bounce. Anyone who knows me knows my MO is to exit the market and look to re-enter instead of riding out a counter move – especially when the indexes have been flat over the previous two months. Sometimes this causes me to re-enter at the same or even slightly worse level, but there are enough times (like right now) I’m glad to not give profits back. This wasn’t a hard decision last week. Over the last 2+ months, we’ve had too many reversals, too many sudden moves and too many large gaps. And most of all, there have been too many times when a trailing stop would not have worked, where a 10% profit was wiped out in a day when the market gapped opposite the short term trend. There have been so many reasons the market is “supposed” to get clobbered yet here we are 9 weeks later and the indexes are unchanged. We must trade what is, not what we want or think.<\/span>
\nOverall I still consider the long term trend to be down…the intermediate term trend to be neutral…and the short term trend to be up. Trading is not hard when you trade in the direction of the trend, but when the trends of different time frames don’t match, we need to err on the side of being conservative.<\/span>
\nOne reason for the higher futures levels is news out of Europe that a comprehensive response to the debt crisis would be finalized by the end of the month. <\/span>
\nThe dollar is down 1%. Oil, copper, gold, silver…they’re all up. 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>
\n