{"id":6155,"date":"2012-11-19T08:42:20","date_gmt":"2012-11-19T13:42:20","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=6155"},"modified":"2012-11-19T08:42:20","modified_gmt":"2012-11-19T13:42:20","slug":"before-the-open-nov-19-3","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=6155","title":{"rendered":"Before the Open (Nov 19)"},"content":{"rendered":"

Good morning. Happy Monday. Hope you had a nice weekend.<\/span>
\nFirst setting stage -> today and Tuesday should be fairly regular days. The market is open Wednesday, but it’ll be dead. It’s then closed Thursday for Thanksgiving, and Friday is a half day and will be dead again. So this is like a 2-day week.
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\nThe Asian\/Pacific markets closed mostly up. Japan rallied 1.4%, South Korea 0.9% and Australia and Hong Kong 0.5%. Europe is currently mostly up. Greece is up 2.7%, Norway 0.6% and Switzerland 0.4%. Futures here in the States point towards a solid gap up open for the cash market. <\/span>
\nThe dollar is down. Oil and copper are up. Gold and silver are up.<\/span>
\nLowe’s (LOW) did well with earnings…the stock is up 4.2%.<\/span>
\nCisco (CSCO) is buying privately-held Meraki for $1.2B.<\/span>
\nTyson (TSN) is out with earnings…stock is up 2.2%. Q4 earnings rose 91%.<\/span>
\nIllumina (ILMN) is down 8%…SINA (SINA) is up 7.6%…BioMimetic Therapeutics (BMTI) is up 81%.<\/span>
\nWestlake Chemical (WLK) has declared a special $3.75\/share dividend.<\/span>
\nFor 4+ days last week we got a continuation of the selling pressure which began right after the election and right after the ECB president said weakness in Europe had finally seeped over to Germany. Then the market went vertical. We weren’t surprised because we’ve been watching a couple key breadth indicators for signs of a washout. Both the AD line<\/strong> and new lows<\/strong> (see below) spiked last Thursday, so at the very least, tightening stops on shorts was the wise thing to do. We never know what will happen, but we can read the obvious signs and make decisions based on where things are leaning and what is likely to happen. <\/span>
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\nSome of the recent selling pressure is because of the fiscal cliff situation. If we continue to get good vibes from talks, the market should react positively – this is the “ace up your sleeve.” It’s the wild card that has the potential to change things. <\/span>
\nFor now, my short term bias is up, but on an intermediate basis I question the market’s ability to rally big. I’ll call it as I see it. 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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