{"id":2365,"date":"2009-11-20T08:27:53","date_gmt":"2009-11-20T13:27:53","guid":{"rendered":"http:\/\/leavittbrothers.com\/blog\/?p=2365"},"modified":"2009-11-20T08:27:53","modified_gmt":"2009-11-20T13:27:53","slug":"before-the-open-nov-20","status":"publish","type":"post","link":"https:\/\/blog.leavittbrothers.com\/?p=2365","title":{"rendered":"Before the Open (Nov 20)"},"content":{"rendered":"

Good morning. Happy Friday. Happy options expiration day.<\/span>
\nEarlier this week I talked about what the index ETFs needed to do to cause the most pain per the put\/call open interest. SPY needed to close above 109 (it’s at 109.82 right now); DIA needed to close around 103 (it’s at 103.65); QQQQ needed to close around 44 (it’s at 43.66); and IWM needed to move into the low 60’s (it’s at 58.66). So the market has done it’s job. SPY and DIA are where they need to be. A handful of QQQQ put buyers might make a very small amount, and only IWM put buyers at very high strikes will make money (there aren’t many relative to all the strikes). Once again the bears bet on a big move down and once again they lost.<\/span>
\nThe Asian\/Pacific markets closed mixed (not bad considering the selling pressure from the States yesterday); Europe is currently down across the board – there are no 1% losers. Futures here in the States suggest another gap down open for the cash market. <\/span>
\nHere’s an update of the 15-min SPY chart. Monday’s gap up was easily filled; The Nov 9 gap is about 25 S&P points below yesterday’s close. <\/span>
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\nThe dollar remains in a downtrend but hasn’t been able to break 75. If it moves up, the market will move down.<\/span>
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\nHere’s BKX. It broke down in late Oct and is now trading in a bear wedge. If this chart breaks down, the market will move down too. <\/span>
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\nEntering this week the trend was up, but there were significant warning signs. After a big Monday that registered new highs, the warnings have exerted their will. More after the open.<\/span>
\nheadlines at Yahoo Finance<\/a><\/span>
\ntoday’s upgrades\/downgrades<\/a>
\nthis week’s Earnings Reports<\/a><\/span>
\nthis week’s Economic Numbers<\/a><\/span>
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