Current Long Positions (stop-losses in parentheses): CX (9.76), CERN (93.77), AIT (30.65), NTRI (20.64), SNE (34.28)
Current Short Positions (stop-losses in parentheses): DTV (39.71)
BIAS: 29% Long
Economic Reports Due Out (Times are EST): None.
My Observations and What to Expect:
- Futures are are up moderately.
- Asian markets were all down, while European markets are showing strength of about 1%.
- Last week was flat, and allowed the markets to consolidate, as was needed.
- The S&P is set up well in the short-term to see a move higher.
- The 10-day moving average continues to offer support, which is similar to the tendency of the S&P during the Sept/Oct rally.
- New short positions in the portfolio offer a minimal reward at this juncture. Focus should primarily be to the long-side, waiting for price to indicate a change in market sentiment.
- A rally to the 1260 level seems likely at this point.
- 1239 is a short-term support level that, should the market break and close below that level, could induce further selling.
- All market indicators that I closely follow, including T2108 and NYSE Reversal Indicator, support the market rallying further in the short-term.
- Below 1227, should we break it, the key support level for the S&P would become 1216 – the lows of previous consolidation.
- For the bears – need to push the markets below 1239. Expectations at this point must be kept to a minimum, and to foil the bullish intentions of the market, will require baby-steps at this point.
- For the bulls – push the market above 1246 and close above it. May be all the reason the market needs in the short-term to rally into the end of the year.
Here Are The Actions I Will Be Taking:
