Current Long Positions (stop-losses in parentheses): HD (37.16), DISCK (35.36), SSO (50.35), BAC (12.03), RAX (41.17), ENZN (10.86), AAPL May 350 Calls
Current Short Positions (stop-losses in parentheses): None
BIAS: 50% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Existing Home Sales (10am), EIA Petroleum Status Report (10:30am)
My Observations and What to Expect:
- Futures are up strong, in excess of 1%, heading into the open.
- Asian markets saw gains of over 1.5%. Europe is trading with a whopping +2% in gains across the board. Everything is rallying hard and strong.
- We are poised to open up at 1330 today on the S&P, which is higher than the previous six trading sessions.
- The key resistance level at 1340 is definitely in play today. We break it, then it becomes very likely we are on our way to new highs.
- At the open today, we’ll be trading above all the moving averages, which includes the 10, 20, and 50-day.
- Volume was low despite the nice bounce that we received yesterday.
- The downtrend on the 30 minute chart on the S&P will be break decisively today (downtrend began on 4/8)
- You could make the conclusion, that the downgrade by the S&P on Monday, ultimately led to the sell-off in the dollar, and is helping the markets today (along with the tech earnings of course).
- Doji-Hammer that I spoke of on Monday, has played out perfectly.
- The obvious double-top being formed of late, will be dead if the market closes above 1340 today.
- The longer-term trend of the market suggests the market is in a state of flux/confusion, with steep sell-offs taking place over the past two months, but no long-term downtrend having been established.
- My conclusion: This is a big move, if it holds. Assuming as much, could lead a to game changer for the markets going forward. But we need to break 1340 first.
Here Are The Actions I Will Be Taking:
