Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls, Sept 124 Calls

Current Short Positions (stop-losses in parentheses): None

BIAS:8% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Wholesale Trade (10am), EIA Petroleum Status Report (10:30am), Treasury Budget (2pm)

My Observations and What to Expect:

  • Futures are down about 1% heading into the open.
  • Asian markets were up about 1.5% on average, and Europe is experiencing gains of about 0.9% on average. 
  • The S&P, in the final hour bounced 70+ points in the final hour of trading in response to the FOMC Statement from yesterday.  
  • I am still of the thought that we will see a massive short-squeeze from here, and that the one hour of as much yesterday’s last hour of trading is not nearly enough of a short squeeze. 
  • A move back above S&P 1200 would be huge for the bulls psychologically and also wipe out Monday’s move as well as last Friday’s. 
  • If this is a dead-cat bounce, then we will a move that takes us somewhere between current price levels and as high as 1250 (just below the March lows). 
  • We managed to get back inside of the lower bollinger band for the first time in six trading sessions – though just barely. But we are still well outside the lower BB on the weekly chart. 
  • Yesterday’s volume was incredibly high, just a shade lower than the high volume mark from Monday’s session. 
  • S&P bounced off of the highs of last Summer, which is now acting as support. 
  • 1040 on the S&P is the next significant support level for the market – and it is a major one.
  • My Conclusion: Bulls can’t afford to give up any of their gains today – need to press the bears to further cover their short positions like we saw in the final hour yesterday. A sell-off today, would re-invigorate the bears.

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Here Are The Actions I’m Taking:

  • I’ll look to day-trade bounce plays and a few breakouts
  • A lot of money is flowing into the high-yield plays – which should provide some nice opportunities in the days ahead. 
  • Will look to unload a number of my options positions this week should the market continue to spike higher.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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