Current Long Positions (stop-losses in parentheses): DISCK (36.25), RAX (43.46), ENZN (10.86), AAPL May 350 Calls, ATML (13.88)
Current Short Positions (stop-losses in parentheses): None
BIAS: 20% Long
Economic Reports Due Out (Times are EST): New Home Sales (10am)
My Observations and What to Expect:
- Futures are up slightly heading into the open.
- Asian markets were mixed seeing returns range from -1.5% to 1%. European markets were slightly higher.
- 1340 looks to be tested early this morning, with an opening price just below the critical level.
- My expectations as it approaches that level, is that it will continue to struggle with 1340, but ultimately break it. In essence, I don’t expect that we’ll just blow right through it.
- Close above 1340 and the much talked about double-top being formed is done and over with, and we’ll be seeing new highs in the short-term.
- Keep in mind that the Fed is meeting this week, and even holding a lunch-time press conference – which is new.
- Volume was light last week, but mainly due to the holiday week. Wouldn’t place a lot of concern on it.
- Silver is parabolic, and is looking extremely dangerous for going long in at this point. If you have a long position in this commodity, be more concerned about locking in profits at this point.
- After 1340, minor resistance at recent highs of 1344, and major resistance at 1430. Between those two marks there is no other price resistance.
- My conclusion: The bounce off of last Monday’s lows looks very healthy (though filled with gaps), and once it can break through 1340, should see a nice move higher.
Here Are The Actions I Will Be Taking:
