Current Long Positions (stop-losses in parentheses): NTAP (52.45), PEP (69.75), RSH (15.93), STZ (22.20), CHKP (54.19), SSO (53.35)
Current Short Positions (stop-losses in parentheses): None
BIAS: 60% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am), Industrial Production (9:15am)
My Observations and What to Expect:
- Futures are flat heading into the open.
- Asia was mixed in their trading, while Europe is averaging about 0.5% lower.
- Commodities are weaker yet again today. It would seem logical at this point, that we are nearing, at the very least, a short-term bottom that should lead to a sizable bounce.
- S&P managed to finish right on the all-important 1329 support level. Watch to see whether we close below this level, or whether we manage a bounce of some kind.
- 3 additional support levels to watch on the S&P: 1323 – 50-day moving average, 1319 – long-term trend-line, 1294 – another major long-term support level.
- For starters, the bulls need to break the previous day’s highs – something that hasn’t been done in over a week, and also maintain any gains into the afternoon, which has been where we’ve seen the most weakness of late.
- My conclusion: 1329 will be where I draw the line in the sand. I will then become more day-trading oriented in my trades at that point.
Here Are The Actions I Will Be Taking:
