{"id":573,"date":"2009-03-17T06:30:49","date_gmt":"2009-03-17T11:30:49","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=573"},"modified":"2009-03-17T06:30:49","modified_gmt":"2009-03-17T11:30:49","slug":"before-the-open-98","status":"publish","type":"post","link":"http:\/\/blog.leavittbrothers.com\/?p=573","title":{"rendered":"Before the Open"},"content":{"rendered":"<p>Good morning. Happy Tuesday.<br \/>\nWe headed into this new week with the market being a little stretched to the upside and in need of some give back, and that\u2019s exactly what we got yesterday. After pushing to a new high midday (to sucker in new longs and cause some shorts to panic), the market sold off, filled its opening gap up and closed at its low.<br \/>\nThis is a very typical dynamic\u2026the market is engineered beyond where you think it should or could go, and then it\u2019s driven back in the other direction. Here\u2019s an intraday SPX chart. A 25% pullback off the high would bring the index down 5 points from yesterday\u2019s close. A 38% pullback would be another 20 points, and a 50% pullback would be 34.<br \/>\n<img src=\"http:\/\/leavittbrothers.com\/stocks-options-futures-trading-before-the-open\/images\/spx031709-1.png\"><br \/>\nDon\u2019t fight a correction. It\u2019s healthy and necessary for this mini uptrend to continue. The bears need to reshort (they\u2019ll add fuel to the fire on the next leg up), and the weak longs need to sell (if prices continued up, they\u2019d cap the upside with their profit taking\u2026and by the way, I would be considered a semi weak long because I prefer taking some profits and rebuying over holding through a correction).<br \/>\nDay traders can certainly play the downside. Swing traders need to start building their buy list for the next leg up.<br \/>\nheadlines at <a href=\"http:\/\/biz.yahoo.com\/apf\/archive.html\">Yahoo Finance<\/a><br \/>\nmovers &#038; shakers from <a href=\"http:\/\/www.marketwatch.com\/news\/story\/Tuesdays-biggest-gaining-declining-stocks\/story.aspx?guid={0761AD1C-E754-4B41-A56F-7BCE83113FC5}\">MarketWatch<\/a><br \/>\ntoday&#8217;s <a href=\"http:\/\/briefing.com\/Investor\/Public\/Calendars\/UpgradesDowngrades.htm\">upgrades\/downgrades<\/a><br \/>\nthis week&#8217;s <a href=\"http:\/\/leavittbrothers.com\/economic-releases-earnings-reports\/2009\/03\/15.cfm\">earnings &#038; economic releases<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Good morning. Happy Tuesday. We headed into this new week with the market being a little stretched to the upside and in need of some give back, and that\u2019s exactly what we got yesterday. After pushing to a new high midday (to sucker in new longs and cause some shorts to panic), the market sold [&hellip;]<\/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\/573"}],"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=573"}],"version-history":[{"count":0,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=\/wp\/v2\/posts\/573\/revisions"}],"wp:attachment":[{"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=573"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=573"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/blog.leavittbrothers.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=573"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}