Current Long Positions (stop-losses in parentheses): RAH (60.75), EQY (16.75), PH (78.95), GIL (30.11), HK (18.56), VMW (82.30), RRC (41.65), NVLS (30.05)
Current Short Positions (stop-losses in parentheses): DTV (41.29), EQR (51.15), VPRT (42.37), ITT (48.01), FCN (36.74), V (77.61)
BIAS: 24% Long
Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Factory Orders (10am), ISM Non-Manufacturing Index (10am)
My Observations and What to Expect:
- Futures are flat heading into the open.
- Both Asian and European markets were mixed in trading.
- 1200 is quickly being left in the dust and the new battle ground will be the 52-week highs set in November at 1227.
- The current rally has the makings of what we saw back on 9/1 which rallied for over two months.
- Yesterday’s rally, on similar volume to that of Wednesday’s rally, offered the continuation that the bulls were seeking, and further legitimized this market rally. A push above 1227, would likely trigger another wave of short covering.
- Going forward I would expect the dip-buying to be back in play for investors.
- Dollar is at an inflection point on its current upward trend. A push below the trend would signal further bullishness for the broader markets, A bounce followed by another leg up, would pose a major problem for the bulls.
- For the bears – defend the resistance at the November highs. A break there, could see S&P rally as high as 1260’s and potentially into low 1300’s (best case scenario).
- For the bulls – close above the aforementioned resistance and push the rally into overbought territory.
Here Are The Actions I Will Be Taking:
