{"id":5072,"date":"2011-11-29T08:37:25","date_gmt":"2011-11-29T13:37:25","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=5072"},"modified":"2011-11-29T08:37:25","modified_gmt":"2011-11-29T13:37:25","slug":"before-the-open-nov-29-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=5072","title":{"rendered":"Before the Open (Nov 29)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\nThe Asian\/Pacific markets closed mostly up. Japan and South Korea gained more than 2%; Australia, China, Hong Kong, Indonesia and Taiwan rallied better than 1%. Europe is currently mixed. Amsterdam is up 1%; no other index has moved 1%. Futures here in the States point towards a moderate gap up open for the cash market which will put the S&P above yesterday’s high.<\/span>
\nThe dollar is down. Oil and copper are up. Gold is flat. Silver is down.<\/span>
\nAmerican Airlines’ parent AMR has filed for bankruptcy. They want to restructure things to cut costs. For example AMR is the only airlines that still funds employee pensions and therefore has higher operating expenses than its competitors. <\/span>
\nNews hit yesterday that a European rescue plan was in the works. Today Italy had to pay more than 7% to auction its debt. Not good, but not as bad as it could have been. Italy still has access to capital. Also France’s AAA credit rating is at risk of being lowered.<\/span>
\nYesterday’s big gap up was a swift reminder we are in a period where anything goes. Europe controls things, and based on news, the S&P can gap up or down 50 points on any day. Most of the time we get some nice intraday swings to keep day traders happy, but swing trading comes with added risk. A nice gain can be wiped out fast. I’m continuing to play it safe and be conservative. When potential market moving news lingers and the chart are not permitted to play out as they would should the normal forces of supply and demand be in effect, I lay low. <\/span>
\nHere’s the SPY 5-min chart. There’s a resistance zone just above yesterday’s close that corresponds to SPX 1195-1200, and then there’s a gap above that. As of now, today’s open will be in the middle of the zone.<\/span>
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\nLet’s see how things play out today. I think things will clear up a little soon. 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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