Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (42.57), SNDK (36.59), AMZN (161.08), BAC (11.34), JACK (23.16), GHL (75.95)
Current Short Positions (stop-losses in parentheses): None
BIAS: 62% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Factory Orders (10am), ISM Non-Manufacturing Index (10am), EIA Petroleum Status Report (10:30am), FOMC Meeting Announcement (2:15pm)
My Observations and What to Expect:
- Futures are up slightly – very little overnight price action.
- Asian and European markets are seeing positive gains.
- The market did break through the 200-week moving average, albeit by less than a half point, but the MA has acted as a major barrier to the market advancing further in this rally.
- Volume recently hasn’t been overly strong.
- Still failed to close above recent highs. But today, the market is currently poised to gap above those highs.
- A break of recent highs should clear the way for the S&P to challenge the April highs.
- Today’s FOMC meeting will carry huge importance in defining the ultimate direction of the market session. Expect a lot of volatility. I’ll also be sure to post the FOMC Statement at 2:15pm.
- Election mid-terms have seen bullish returns the last three times, and overall, mid-term election week, historically, tends to be very bullish.
- The bears should focus their efforts in just closing below the 10-day moving average and Monday’s lows.
Actions I Will Be Taking:
