{"id":475,"date":"2009-05-07T06:30:57","date_gmt":"2009-05-07T11:30:57","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=475"},"modified":"2009-05-07T06:30:57","modified_gmt":"2009-05-07T11:30:57","slug":"before-the-open-45","status":"publish","type":"post","link":"http:\/\/blog.leavittbrothers.com\/?p=475","title":{"rendered":"Before the Open"},"content":{"rendered":"

Good morning. Happy Thursday.
\nThe market is in idiot mode. That\u2019s when the market gets bought up despite prior gains and all logic and when you\u2019re literally amazed at the bulls\u2019 ability to keep pushing prices higher. I\u2019m one of those bulls (for now). When many others tried picking a top (several times) I stuck my chart analysis and simply said: \u201cthere\u2019s nothing in the charts that would suggest a huge sell-off was imminent.\u201d I know the gains don\u2019t make sense. I know half the banks would go bankrupt if not for hundreds of billions the government dumped in them. I know the unemployment rate continues to rise and the housing situation isn\u2019t getting better. I know we\u2019re in the midst of the worst financial crisis since the Great Depression. I\u2019m aware of all the reasons why the market could have bounced off the lows but not rally off the lows. But despite all that is bad, the Russell 2000 is up more than 50% off its low and the SPX 40%. For those of you who doubt technical analysis, I can\u2019t think of a better persuasive argument. If you trade\/invest off the fundamentals, you would have never been long off the March low and you certainly wouldn\u2019t have gone long in the past week as literally dozens of stocks broke out and rallied. But technical analysts don\u2019t study what should happen, we study and trade off what is happening. We covered our shorts within one day of the March low and went long one day after and have basically stay long or maintained our long bias ever since. We were able to do this for one reason and one reason only. It\u2019s because the charts told us to maintain a long bias. Simple as that. The trend was up and there were no warning signs offered. Keep it simple.
\nHere\u2019s my daily SPX. The first target will get hit at today\u2019s open because the futures point towards a decent gap up. But we must be aware of a possible \u2018buy the rumor, sell the news\u2019 scenario. The market \u2013 especially the financials \u2013 have run up big into today\u2019s official release of the stress test results which have been leaked little by little over the last week. If we don\u2019t get a sell-off today, look for some profit taking tomorrow after the jobs report comes out. In any case, the trend is up; we\u2019ve had numerous great breakouts, but don\u2019t get lazy. Be a trader, not a buy and holder.
\n
\nheadlines at Yahoo Finance<\/a>
\nstocks to watch from MarketWatch<\/a>
\ntoday’s upgrades\/downgrades<\/a>
\nthis week’s earnings & economic releases<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Thursday. The market is in idiot mode. That\u2019s when the market gets bought up despite prior gains and all logic and when you\u2019re literally amazed at the bulls\u2019 ability to keep pushing prices higher. I\u2019m one of those bulls (for now). When many others tried picking a top (several times) I stuck […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[2],"tags":[],"_links":{"self":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/475"}],"collection":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=475"}],"version-history":[{"count":0,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/475\/revisions"}],"wp:attachment":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=475"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=475"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=475"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}