{"id":7957,"date":"2014-09-16T07:44:57","date_gmt":"2014-09-16T12:44:57","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=7957"},"modified":"2014-09-16T07:44:57","modified_gmt":"2014-09-16T12:44:57","slug":"before-the-open-sep-16-5","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=7957","title":{"rendered":"Before the Open (Sep 16)"},"content":{"rendered":"

Good morning. Happy Tuesday.<\/span>
\n The Asian\/Pacific markets closed mostly down. China dropped 1.8%, followed by Singapore and India (down 1.2%) and Hong Kong and South Korea (down 0.9%). Europe is also mostly down, but the losses are smaller. Greece is down 2%, followed by Prague (down 1.2%), Austria (down 0.9%) and London, France and Italy (down 0.5% each). Russia is up 1.1%. Futures here in the States point towards a down open for the cash market.<\/span>
\n Happy Birthday Leavitt Brothers -> special offer here<\/a>.
\n<\/strong><\/span>
\n The dollar is down slightly. Oil is down, copper is up. Gold and silver are up. <\/span>
\n The market continued its slide yesterday. The Dow, S&P 500 and S&P 400 put in lower lows while the Nas and Russell broke short term support lines in route to dropping to 1-month lows. <\/span>
\n For a couple weeks the indicators have been mixed – some were acting “normal” (how you’d expect them to act during a consolidation period within an uptrend); others were not supportive of an upside breakout. Now most point down, and instead of thinking they can reverse soon, it’d be better to get a full-blown washout. Here’s an example -> the 10-day MA of the NYSE AD line. If the market was strong, the AD line would have found support near 0 and reversed up. That’s what it does within uptrends – oscillates between 0 and a healthy number. But when it dips much below 0, it hints at more weakness than may be present in the index charts. The recent move below 0 told us we were likely to get a mini correction off the high, not just a pause.<\/span>
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\n Several other indicators point to the same scenario – a mini correction rather than a pause before attempting to move higher. <\/span>
\n My bias remains to the downside. If you’re a long-only trader, sit tight and wait. Otherwise the short side can be played with knowledge things can change at tomorrow’s FOMC statement. Also, it looks like Alibaba may pull a Facebook and squeeze every last penny out of Wall St. If so, much more fuel will be added to the recent weakness after BABA goes public. More after the open. <\/span>
\nStock headlines<\/strong> from barchart.com…<\/span>
\n Con-way (CNW +0.38%) was downgraded to ‘Neutral’ from ‘Outperform’ at RW Baird.<\/span>
\n Arch Coal (ACI -3.05%) and Peabody (BTU -2.22%) were both downgraded to ‘Reduce’ from ‘Neutral’ at Nomura.<\/span>
\n TRW Automotive (TRW -0.78%) was downgraded to ‘Neutral’ from ‘Overweight’ at JPMorgan Chase.<\/span>
\n AngloGold (AU +1.64%) was upgraded to ‘Overweight’ from ‘Neutral’ at HSBC.<\/span>
\n Terex (TEX -6.43%) was upgraded to ‘Buy’ from ‘Hold’ at Stifel.<\/span>
\n Cummins (CMI -0.48%) was downgraded to ‘Market Perform’ from ‘Outperform’ at Wells Fargo.<\/span>
\n Anglo American (AAUKY +0.84%) was upgraded to ‘Buy’ from ‘Hold’ at Deutsche Bank.<\/span>
\n Science Application International Corporation (SAIC -0.06%) has been awarded a $423.8 million government bridge contract for maintenance, repair, and operations in New Jersey.<\/span>
\n Microsoft (MSFT -0.96%) was upgraded to ‘Outperform’ from ‘Sector Perform’ at RBC Capital.<\/span>
\n Adobe (ADBE -1.00%) was downgraded to ‘Sector Perform’ from ‘Outperform’ at RBC Capital.<\/span>
\n Glenview Capital Management reported a 6.15% passive stake in Fossil (FOSL -2.60%).<\/span>
\nEarnings and Economic Numbers<\/strong> from seekingalpha.com…<\/span>
\n Today’s economic calendar:
\n FOMC meeting begins
\n 7:45 ICSC Retail Store Sales
\n 8:30 Producer Price Index
\n 8:55 Redbook Chain Store Sales
\n 9:00 Treasury International Capital<\/span><\/span><\/span><\/span><\/span><\/span>
\n Notable earnings before today’s open: FDS<\/span>
\n Notable earnings after today’s close: ADBE, APOG<\/span>
\nOther<\/strong>…<\/span>
\ntoday’s upgrades\/downgrades<\/a> from briefing.com<\/span>
\nthis week’s Earnings<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
\n