{"id":477,"date":"2009-05-05T06:30:00","date_gmt":"2009-05-05T11:30:00","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=477"},"modified":"2009-05-05T06:30:00","modified_gmt":"2009-05-05T11:30:00","slug":"before-the-open-47","status":"publish","type":"post","link":"http:\/\/blog.leavittbrothers.com\/?p=477","title":{"rendered":"Before the Open"},"content":{"rendered":"

Good morning. Happy Tuesday.
\nThe market shifted into idiot mode yesterday. That\u2019s where everything gets bought up irrelevant of all factors. Even the bottom of the barrel crap that has no business staying in business during a recession got bought up. Coal stocks and steel stocks (both highlighted over the weekend) did great. Oil did great (also mentioned). Perhaps my \u2018inflection point\u2019 concept will play out \u2013 a couple days after SPX 875 was penetrated.
\nHere\u2019s the daily SPX \u2013 nice separation from the breakout area. The depth of the pattern (from 825 to 875) measures up to 925, so that\u2019s our target for now. But measured moves and targets won\u2019t matter much if the market stays in idiot mode. It\u2019s pure emotion. There\u2019s been a growing bearishness over the last week or two, and as long as the bears try to pick a top, the market will continue to surge higher.
\n
\nIt was stated over the weekend that the banks must keep up. The market was making new highs, but the banks were lagging. Whatever the reason \u2013 perhaps some trepidation ahead of the stress test results \u2013 the banks had to improve. Here\u2019s the BKX. Nice day yesterday. It\u2019s got to continue.
\n
\nI also stated energy must do well because 1) It\u2019s 13% of the SPX and 2) The implication is when energy moves up, demand is increasing because the economy is improving. Whether the economy is indeed improving is not something I know, but yesterday\u2019s energy breakout was encouraging.
\n
\nThe trend is up until it\u2019s not. Simple as that. The situation hasn\u2019t changed since soon after the early-March bottom. There are only two positions right now \u2013 long and cash. Trying to pick a top is not wise considering there\u2019s no evidence whatsoever a top is imminent.
\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 Tuesday. The market shifted into idiot mode yesterday. That\u2019s where everything gets bought up irrelevant of all factors. Even the bottom of the barrel crap that has no business staying in business during a recession got bought up. Coal stocks and steel stocks (both highlighted over the weekend) did great. Oil did […]<\/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\/477"}],"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=477"}],"version-history":[{"count":0,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/477\/revisions"}],"wp:attachment":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=477"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=477"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=477"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}