Current Long Positions (stop-losses in parentheses): CX (10.49), AIT (31.49), NTRI (20.64), SNE (35.03), MENT (11.74), AMZN (177.15), F (16.33)
Current Short Positions (stop-losses in parentheses): None
BIAS: 47% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), GDP (8:30am), Corporate Profits (8:30am), Existing Home Sales (8:30am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)
My Observations and What to Expect:
- Futures are are flat heading into the open.
- Asian and European markets are trading flat/mixed.
- Volume will continue to dramatically fall off in the days ahead as Christmas is only days away. Friday the market is closed.
- The market continues to make new rally-highs hitting 1254 yesterday, and is quickly approaching a resistance zone in the 1260’s.
- The market’s rally continues to be very healthy and orderly, creating an environment for consistent and steady gains, with pullbacks that are contained and typically bought on the dip.
- The lows from 12/15 and 12/16 represent, in my opinion, the “higher-lows” in this recent market rally, and a break below them at 1232, would significantly stall this market’s upward progression and potentially invite a new trend to the downside.
- The S&P continues to follow the 10-day moving average higher, which at this point should also be considered a barometer on the health of this current leg-up in the market.
- The next target for this market is to reach into the 1270’s
- 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 – A sell-off significant enough that at least brings the market back to its current trendline. A break of the trendline would hamper the bull’s efforts.
- For the bulls – Now that 1247 has been broken, begin pushing price levels to new resistance levels in the 1260’s on the S&P.
Here Are The Actions I Will Be Taking:
