Current Long Positions (stop-losses in parentheses): TICC (10.28), MCD (77.74), BIDU (104.74), CTXS (64.13), MENT (11.14), GS (160.40), HRS (44.99), HTZ (11.78), KR (22.36)
Current Short Positions (stop-losses in parentheses): TFSL (8.69)
BIAS: 57% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Producer Price Index (8:30am), Redbook (8:55am), Treasury International Capital (9am), Industrial Production (9:15am), Housing Market Index (10am)
My Observations and What to Expect:
- Futures are seeing moderate weakness.
- Asian markets closed in the red, while European markets are experiencing heavy selling.
- S&P closed just a shade above the 20-day moving average, however the market is poised to open well below that level.
- 200-week moving average sits at 1191, which if that breaks, would represent a shift in the market outlook.
- We’ll have POMO every day this week. The full schedule can be found here.
- So far QE2 has been a “sell-the-news” event.
- Yesterday’s volume was well-below average.
- Main goal for the bulls today will be to bounce off of the 20-day moving average and thus avoid a close below it.
- Bears should aim to close below 20-day moving average at 1195, and the lows from Friday. Ideally, a close below 1183, would cause a lot of problems for the bulls.
Actions I Will Be Taking:
