{"id":4935,"date":"2011-10-11T07:32:27","date_gmt":"2011-10-11T12:32:27","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4935"},"modified":"2011-10-11T07:32:27","modified_gmt":"2011-10-11T12:32:27","slug":"before-the-open-oct-11-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4935","title":{"rendered":"Before the Open (Oct 11)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly up. Hong Kong, Indonesia and Taiwan gained more than 2%. Europe is currently down across the board, but only Norway is down 1%. Futures here in the States point towards a down open for the cash market, but considering yesterday’s vertical rally into the close, the market is only set to give back a couple of those points.<\/span>
\nThe dollar is up slightly. Oil, copper, gold and silver are down.<\/span>
\nAs I said yesterday, I think today is a semi big day. A handful of markets around the world were closed yesterday, and volume here in the States was light. The current rally is the biggest since this range\/consolidation period began two months ago. The S&P is up 120 points, and many stocks are up 10% or more. The first move off a bottom is the easy move. Bulls are excited about buying at lower levels and bears add to the buying pressure by covering shorts. But stocks are much less attractive 120 points later. At the very least, the risk\/rewards aren’t nearly as good as a week ago. <\/span>
\nHere’s the 30-min S&P. One could argue it broke out from a falling wedge pattern, but I’m not going to get my hopes up until it clears 1225…and even after that I’ll want a mini correction that gets bought.<\/span>
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\nBacking up a little, here’s the 60-min S&P going back to the beginning of the year. It’s a mess. It’s one thing to roll up and down over several months (as it did the first 7 months of the year). It’s entirely different to experience so many sudden reversals in such a short time period. What’s this mean (from a trading perspective)? It means don’t trust any move. Keep trades short term, and forget using stops. Scale out of positions when you can, not when the market gaps against you and you have no choice. <\/span>
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\nMore 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