Current Long Positions (stop-losses in parentheses): BBBY (53.04), DO (71.97), SLV June $35 Puts
Current Short Positions (stop-losses in parentheses): None
BIAS: 20% Cash
Economic Reports Due Out (Times are EST): MBA Purchase Applications, Challenger Job-Cut Report (7:30am), ICSC-Goldman Store Sales (7:45am), ADP Employment Report (8:15am), Redbook (8:55am), ISM Manufacturing Index (10am), Construction Spending (10am)
My Observations and What to Expect:
- Futures are showing mild weakness prior to the open.
- Asia was flat in their trading, while Europe is down on average about 0.5%.
- Huge day for the bulls yesterday as the indices were up on average 1%.
- Of note yesterday, was the huge spike in volume, and the breakout of the downward channel we had been stuck in for about a month.
- We also broke above the 20-day moving average which had been problematic of late.
- More likely than not, we’ll see a challenge of recent recovery highs established back on 5/2.
- A close above 1347, would incite bullish enthusiasm going forward, representing a break of the previous short-term lower-high.
- My conclusion: Though we may see some profit taking in the coming days, a strong possibility exists that we will begin a new leg up in this market.
Here Are The Actions I Will Be Taking:
