Current Long Positions (stop-losses in parentheses): AIT (31.83), NTRI (21.22), MENT (12.01), AMZN (177.15), F (16.33), CERN (93.98), OI (29.67)
Current Short Positions (stop-losses in parentheses): None
BIAS: 43% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am)
My Observations and What to Expect:
- Futures are are up slightly.
- A number of economic reports due out today, but nothing that I’d consider “market-movers”.
- Asian markets are mixed, while European markets are showing a slight bit of strength.
- Volume was extremely light yesterday, and will continue to be so throughout this week.
- As mentioned in yesterday’s trading plan, yesterday’s gap down was filled, and any other gap-downs we see this week, will likely be met with the same fate.
- China’s surprise rate hike, had little impact on the markets yesterday
- Yesterday represented the second day of consolidation at the recent highs of this market.
- Any kind of surge in the market, where we rally, say 10 points on the S&P or more, will be a good opportunity to take profits off the table.
- Rally continues to be very healthy, backed by dip buyers, with a steady upward expansion.
- There is about 10 points of give back on the S&P from where it currently sits, and where the nearest level of support lies at 1247, where any sell-off within those parameters keeps the markets and the short-term uptrend intact without question.
- Breaking support at 1247, and the 10-day moving average, could usher in short-term weakness in the market.
- The dollar is once again looking a bit top-heavy and poised to move lower in the short-term, which should strengthen this market rally.
- The lows from 12/15 and 12/16 represent, in my opinion, the “higher-lows” in this recent market rally, and a break below them at 1232, would significantly stall this market’s upward progression and potentially invite a new trend to the downside.
- Below 1227, should we break it, the key support level for the S&P would become 1216 – the lows of previous consolidation.
- For the bears – use the seasonally light volume, to push markets lower, with the first target being 1247.
- For the bulls – break the highs from last Wednesday, and out of the 2-day consolidation.
Here Are The Actions I Will Be Taking:
