{"id":517,"date":"2009-04-01T06:30:55","date_gmt":"2009-04-01T11:30:55","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=517"},"modified":"2009-04-01T06:30:55","modified_gmt":"2009-04-01T11:30:55","slug":"before-the-open-65","status":"publish","type":"post","link":"http:\/\/blog.leavittbrothers.com\/?p=517","title":{"rendered":"Before the Open"},"content":{"rendered":"

Good morning. Happy Wednesday.
\nSo the Wild Wild West continues on Wall St. Every day we get a big gap \u2013 some fill the same day, most do not. There are lots of random intraday moves \u2013 no rhyme or reason. Technical analysis works best when news is scarce and the forces of supply and demand can be formed by millions of traders\/investors all over the world analyzing the market in their own way. Greed, fear, wishes, wants and desires all play a role. But when the market is held hostage to every wink, nod and smirk out of Washington, the natural forces that exert themselves get jerked around.
\nAmerica is great because we have rules, and while we may not like the rules, it\u2019s better to know they exist so we can plan around them than to not know what they are or to know they can change any time. Right now Washington is making things up as they go. They aren\u2019t following any precedent. They aren\u2019t following the rules in place, so no one knows what they\u2019ll do. Why was Bear Sterns saved but Lehman permitted to go under? Why are BAC and C still in business when dozens of other banks have been taken over? Why is AIG still in business? Or at the very least, why do the shareholders and creditors still have value?
\nThis is the market we\u2019re dealt, so this is the market we\u2019ll trade. Here\u2019s the 60-min SPX chart. The index broke down from a rising wedge and is now trading in a falling wedge.
\n
\nHeading into last week I said the market was overbought and in need of a either a wicked pullback or some sideways trading to allow the overbought readings to reset because there was too much fluff out there. Since that time the market went up and is now coming back down. Overall it\u2019s up a little, so although zooming in reveals lots of erratic movement, panning out reveals a market that\u2019s just working off an overbought condition.
\nStrong markets embrace good news and ignore bad news. This was the market\u2019s character in early and mid March but not any more. The market is falling on bad news. Wanna know when\/if the market will leg up again? When bad news hits and a rally follows, we may actually be able to hold for more than a day or two. Otherwise, we’ll go back to shorting.
\nheadlines at Yahoo Finance<\/a>
\nstocks to watch MarketWatch<\/a><\/a>
\nupgrades\/downgrades<\/a>
\nearnings & economic releases<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

Good morning. Happy Wednesday. So the Wild Wild West continues on Wall St. Every day we get a big gap \u2013 some fill the same day, most do not. There are lots of random intraday moves \u2013 no rhyme or reason. Technical analysis works best when news is scarce and the forces of supply and […]<\/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\/517"}],"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=517"}],"version-history":[{"count":0,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/517\/revisions"}],"wp:attachment":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=517"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=517"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=517"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}