Current Long Positions (stop-losses in parentheses): QID (10.49), GLD (128.65), SDS (22.29)
Current Short Positions (stop-losses in parentheses): PII (75.36), T (28.74)
BIAS: 21% Short (counting QID and SDS as shorts)
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller Home Price Index (9am), FHFA House Price Index (10am), Consumer Confidence (10am)
My Observations and What to Expect:
- Futures are slightly negative heading into the open.
- Asian and European markets are trading in a mixed fashion, with the exception of the Nikkei which was up 1.15%.
- A large plate of earnings will be served up today week that includes YHOO, JNJ, DD, MMM, HOG, MMM, BLK.
- S&P continues to find support at the lower ascending support level of the narrow price channel.
- Volume was noticeably weaker than it has been in recent days.
- 1291 acted as resistance yesterday, which is the same price level the index was unable to break through on Friday.
- Nasdaq continues to look much weaker than the S&P and is running into resistance still at the 10-day moving average.
- In order for this market to see a correction at this point, the bears need to break the 20-day moving average on the S&P.
- A move to new highs in the market would effectively end, for now, any hopes the bears had of pushing this market lower, and instead would see more price expansion.
- Evening star formation from 1/17-1/19 should indicate at least a short-term top is in place in this market.
- 1261 represents the short-term ‘higher-low’ on the daily charts.
- For the bears – Push the S&P below the 10 day moving average and outside of the narrow rising price channel.
- For the bulls – Buy up any intraday dips, and push market above recent highs.
Here Are The Actions I Will Be Taking:
