Current Long Positions (stop-losses in parentheses): HRB (17.39), GOOG (524.00), ADI (38.99), CA (24.09), UNP (97.45), NFLX June 270 Calls, JNY (14.45), AMAT (15.49)
Current Short Positions (stop-losses in parentheses): None
BIAS: 62% Long
Economic Reports Due Out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Pending Home Sales (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are slightly lower heading into the open.
- Asia traded in a wide range – China was down 1.31% and Japan up 1.6%. Europe is trading, on average, moderately higher.
- Ideal upside follow through yesterday after having broken through the critical 1340 level the day prior.
- S&P is beginning to creep outside the upper bollingerband, which makes me more concerned with protecting profits at this point. We could see the market pullback at least a day or two to work off overbought conditions and get back inside the upper BB.
- Volume has increased nicely each of the past two days.
- Some minor resistance may be found at 1370, but the more significant level is at 1430 .
- 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.
- On the 30min intraday charts, watch the 1350 level for support. Strong trendline in place off of the 4/18 lows. A break below 1350 would break this level.
- Higher-low has been established at 1294.
- Market is overbought in the short-term.
- My conclusion: GDP, combined with Jobless Claims will largely dictate the course of the markets today. A strong move higher, will push me to begin booking profits in certain names.
Here Are The Actions I Will Be Taking:
