The Pre-Market Routine: What to Check Before the Market Opens

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Most trading decisions are made in the 60 minutes before the market opens. This is when you assess the macro environment, check your existing positions, identify new setups, and build your plan for the day. Walking into 9:30 AM without a plan is how you make emotional, reactive decisions.

Here's the complete pre-market routine we run at TarsierAlpha.

7:00–7:30 AM: Market Environment Assessment

1. Futures check

How are S&P 500 (ES), Nasdaq (NQ), and Dow (YM) futures trading pre-market? A futures gap up or down sets the tone for the open.

• Futures up 0.5%+: Bullish open expected. Gap fill candidates may push higher quickly.
• Futures down 0.5%+: Cautious day. Oversold setups may get more oversold before bouncing.
• Futures flat: Neutral. Let the first 30 minutes of trading show you which direction has conviction.

2. VIX level

Pull up VIX (covered in full in our VIX article):

• VIX below 15: Low fear, complacency. Options premiums are cheap. Good for buying.
• VIX 15–25: Normal range. Standard trading conditions.
• VIX 25–35: Elevated fear. Higher premiums. Oversold bounces become more compelling.
• VIX above 35: High fear. Maximum opportunity for quality Oversold Bounce entries — but also maximum volatility risk.

3. Overnight news

Scan major financial news (Bloomberg, WSJ, Reuters) for:

• Fed statements or economic data releases
• Earnings announcements from major companies
• Geopolitical events that could affect risk appetite
• Sector-specific news affecting your watchlist

7:30–8:00 AM: Position Review

For each open position, assess:

1. Where is the stock trading pre-market?
2. Has any news come out overnight that changes the thesis?
3. Is the position approaching a stop loss or profit target?
4. Does the position need adjustment (close before earnings, lock in profit)?

Make decisions on open positions before the market opens when possible — not in the chaos of the first 30 minutes.

8:00–8:30 AM: New Setup Identification

1. Check TarsierAlpha scanner results

Review the morning watchlist from the platform. Has anything new appeared in the Top Candidates (Score 62+)?

2. Check your personal watchlist

Run through your 20–30 watchlist stocks:

• Any gap up or gap down pre-market creating a gap fill setup?
• Any that crossed below RSI 35 overnight?
• Any approaching major support zones?

3. Options chain check on active setups

For any setup you're considering today, pull up the options chain:

• What is IV rank (current IV vs historical range)?
• What's the bid-ask spread — is the market liquid?
• What premium are you paying for your target strike and expiration?

8:30–9:00 AM: Plan the Trades

For each trade you're considering today:

• Write down the specific entry trigger ("I'll buy if PYPL holds above $42 in the first 15 minutes")
• Write down the stop loss before entry
• Write down the profit targets (T1, T2, and full target)
• Write down the position size

This 30-minute planning session is the most important part of the routine. Decisions made with a clear head before the market opens are consistently better than decisions made in reaction to market moves.

9:30 AM: The First 15-Minute Rule

Never trade the first 5 minutes. The open is chaotic, spreads are wide, and direction is unclear. Let the initial orders clear.

After 15 minutes, the first trend of the day is usually established. If your setup has confirmed (stock holding the level you planned to buy, options chain active and liquid), execute.

If the setup hasn't confirmed — wait. There will be another opportunity. Chasing a stock that opened 3% higher than where you planned to buy is how you get into bad risk/reward trades.