{"id":5740,"date":"2012-06-20T07:35:43","date_gmt":"2012-06-20T12:35:43","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=5740"},"modified":"2012-06-20T07:35:43","modified_gmt":"2012-06-20T12:35:43","slug":"before-the-open-jun-20-2","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=5740","title":{"rendered":"Before the Open (Jun 20)"},"content":{"rendered":"

Good morning. Happy Wednesday. Happy Fed Day.<\/span>
\nThe Asian\/Pacific markets closed mostly up. New Zealand dropped 1%; Indonesia and Japan rallied 1%. Europe is currently mixed. Austria is up 1%; there are no other 1% movers. Futures here in the States point towards a positive open for the cash market.
\n<\/span>
\nThe dollar is down a little. Oil is up slightly; copper is down. Gold and silver are down.<\/span>
\nSo today is Fed day. It’s the day the FOMC tinkers with the overnight rate and discount rate and issues some sort of “state of the economy” and “state of our stance” statement (the fun and games happens at 12:30 est). Rates can’t be lowered because they’re already targeted at 0.0-0.25%, but they can keep their statement unchange or make comments about Europe unraveling and economic numbers here in the States getting worse and mention they are standing by ready to act if things get worse. This is what some on Wall St. expect, so the bar is pretty high. We could get a “sell the news” scenario if they Fed sticks with their previous comments. We could also get a mini blow off top. The S&P is, after all, up almost 100 point this month and has yet to put in back-to-back down days. It’s due for a rest.<\/span>
\nSpanish 10-year notes again hit a 7% yield and then pulled back some. They also had to pay 5.07% for 12-month treasuries and 5.11% for 18-month paper. These shorter term debt yields are records are not sustainable. So much for that $125 billion injection into the banking system calming things down and giving investors confidence.<\/span>
\nProcter and Gamble (PG) lowered guidance.<\/span>
\nAdobe (ABDE) cut its full-year revenue outlook.<\/span>
\nPepsi (PEP) said an unfavorable exchange rate will hurt 2012 profits more than previously expected.<\/span>
\nThat’s it for now. From a technical standpoint, the market is much improved lately. The indexes based and one by one broke out above their bases. Breadth indicators have improved also. Sentiment is better. But a rest is needed, so don’t get too giddy with the upside. Be a trader. There’s always another set up. More after the open.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\nheadlines at MarketWatch<\/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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