{"id":4990,"date":"2011-11-01T07:48:49","date_gmt":"2011-11-01T12:48:49","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=4990"},"modified":"2011-11-01T07:48:49","modified_gmt":"2011-11-01T12:48:49","slug":"before-the-open-nov-1-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=4990","title":{"rendered":"Before the Open (Nov 1)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly down. Hong Kong, Indonesia and Singapore lost more than 2%. Australia, India, Malaysia and Japan dropped more than 1%. Europe is getting clobbered. Germany is down more than 5%. France, Belgium, Norway and Stockholm are down more than 4%. Futures here in the States point towards an extremely big gap down for the cash market (S&P down 37).<\/span>
\nYikes, suddenly sentiment is shifting. A weak day followed by a big gap down is how the market acted in Aug and Sept. For the last month, shallow dips got bought and there were no massive gap downs or back-to-back down days. Is the market shifting back to its Aug\/Sept character? <\/span>
\nOne thing is for sure. The situation in Europe is not over. News out of Greece is the main reason for the selling pressure<\/span>
\nHere’s an update of the 60-min charts I started posting at the end of last week when I started suggesting traders be a little careful. Each index hit a resistance level (the Dow hit former support, the Nas and S&P hit their July lows, the Russell the bottom of their Jan-Jul range) at the same time. Given Oct was one of the best months in two decades, the risk\/rewards were not as favorable as they had been.<\/span>
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\nWell, we had a month of relatively easy trading. Dozens of stocks broke out and most rallied to their targets or close enough to their targets for all or partial profits to be taken. I don’t think we could have asked for a better technical situation. Dips got bought, there were no scary times, no back-to-back down days…just lots of upside movement and very positive sentiment. Now things have changed, so we need to change. Perhaps things get cleared up in Europe, and the market will right itself. Or perhaps things won’t get cleared up, and the market will be weak until we have more clarity. Your guess is as good as mine. My personal preference is to chill out for a few days and let the dust settle. I’ve many good trades the last month. I’m content to lay low and see what happens for now. 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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