Current Long Positions (stop-losses in parentheses): DISCK (36.79), RAX (43.46), HRB (17.39), GOOG (522.00), ADI (38.99), CA (23.95), UNP (95.45), NFLX June 270 Calls.
Current Short Positions (stop-losses in parentheses): None
BIAS: 51% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), EIA Petroleum Status (10:30am), FOMC Meeting Announcement (12:30pm)
My Observations and What to Expect:
- Futures are up slightly heading into the open.
- Asian markets were mixed with Japan being up 1.4%. Europe is seeing gains of about 0.5% today.
- We broke the S&P 1340 stronghold in a very convincing manner yesterday, and closing a fresh recovery highs. Very strong positive for the markets.
- By breaking 1340, we confirmed the inverse head and shoulders that had been in development since February ’11. Last time we confirmed a IH&S pattern was back in Sept ’10 and we rallied 220 points after the confirmation.
- The next logical resting place for the market is 1430, which would mark a very strong move by the markets.
- One anomaly about yesterday’s trading action was the weakness in AAPL, BIDU, AMZN, VMW, and others despite the market being up strong.
- Like yesterday, I think we’ll see a lot of short covering in the days ahead, as the bulls give up their bearish positions and forced to cover.
- Watch the Bernanke Press Conference today – it is at 12:30pm EST, and could throw us a curve ball. Should create some market volatility.
- The much talked about double top in the markets has been rendered null and void with a breakout to new highs yesterday.
- Higher-low has been established at 1294.
- Market is overbought in the short-term.
- Silver is looking like it is in the process of rolling over here based on volatility and volume levels.
- My conclusion: I’m cautious about the Fed Statement today, but overall, I am positive on this market to march higher in the short and intermediate time-frames.
Here Are The Actions I Will Be Taking:
