Current Long Positions (stop-losses in parentheses): ECA (34.45), AAPL (334.75), SU (44.68), ERTS (19.58)
Current Short Positions (stop-losses in parentheses): None
BIAS: 40% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications &7am), EIA Petroleum Status Report (10:30am), Treasury STRIPS (3pm)
My Observations and What to Expect:
- Futures are moderately higher going into the open.
- Asian Markets saw returns range from -0.3% up to 1.1%. European markets were moderately higher.
- For the third straight day, the S&P is really struggling with the 1332 level in the market. Though it seems fine with breaking it on an intraday basis, it doesn’t seem able to hold it into the close.
- Watch for a close below 1328, to determine whether this market may see additional seeing in the short-term.
- Volume continues to fall in line with what we’ve see over the last three weeks.
- Recent consolidation, to a minor extent is helping to work off overbought conditions.
- The last time we saw the 10-day MA cross through the 20 and 50-day MA in back-to-back days, the S&P exploded for a 110+ point move before seeing any type of pullback.
- If we close decisively above 1332 today, we’ll likely see additional follow through in the form of an extended move in the markets.
- A close above 1332 would technically break the downtrend the market has been in since 2/18/11.
- After 1332 is broken the next level of resistance is 1344 on the S&P.
- My conclusion: While there is no reason to believe the market won’t continue to march higher going forward, I believe we could see a few days of profit taking on the horizon.,
Here Are The Actions I Will Be Taking: