Before the Open (Aug 29)
Good morning. Happy Wednesday.
The Asian/Pacific markets closed mixed. Indonesia, China and India suffered noticeable drops. Europe is currently mixed; Greece is down 1.5%, otherwise there are no 1% movers. Futures here in the States point towards a flat open for the cash market.
The dollar is up slightly. Oil and copper are down. Gold and silver are down.
There’s no earth-shattering news to talk about. The market is slow. The ranges are small. The volumes are light. There are some decent set ups to be played, but for the most part we aren’t getting follow through. Quick trades are the name of the game. We need to be content with small profits right now…if you choose to trade at all.
Bernanke speaks tomorrow. Some are hyping it up as an important speech; others say it’s very over-rated. The market has done well since the June low. Perhaps QE3 is being priced in, and if Wall St. doesn’t get it, it’ll be a big let down. But we could also get a “sell the news” scenario which would lead to selling anyways. After all, each round of easing has had diminishing returns, and the S&P is 150 points off its low. How much further can the rally go, especially considering key foreign markets are not keeping up?
Here the 5-min S&P chart over the last month…from one range to the next. We’ve gotten almost no directional moves…just lots of grinding in place.
Don’t force it out there. Be conservative. Rest up, read a book, get ready for the fall season. More after the open.
headlines at Yahoo Finance
headlines at MarketWatch
this week’s Earnings
this week’s Economic Numbers