Current Long Positions (stop-losses in parentheses): PEP (70.10), STZ (22.20), FTR (8.57), CB (64.32), PCLN (502.75), KCI (57.69), SLV (33.36), PNW (44.78)
Current Short Positions (stop-losses in parentheses): None
BIAS: 60% Long
Economic Reports Due Out (Times are EST): Chicago Fed National Activity Index (8:30am)
My Observations and What to Expect:
- Futures are significantly lower heading into the open.
- Asia saw losses as much as 2.9% and Europe on average is trading 1.7% lower.
- Greece and Italy downgrades are weighing heavily on the markets.
- We are setting up to open and challenge the lows from last week (recent lows) at 1318 on the S&P.
- Today’s open will put us below the 50-day moving average at 1325 and the long-term trend-line at 1330.
- The S&P continues to trade in a downward channel. with today’s negative open, the bottom channel could possibly be tested and would likely offer a potential bounce area for the market at 1311.
- Volume since the beginning of the month continues to taper off.
- My conclusion: It’s definitely a day where my focus will be damage control, and to keep losses on current long positions to a minimum. However, don’t expect me either to load the wagon with short positions either. After a move down like we are seeing this morning, isn’t the time to do so.
Here Are The Actions I Will Be Taking:
