Current Long Positions (stop-losses in parentheses): VMW (84.50), APOG (12.18), BIDU (105.80), ESV (48.75), CX (9.56), NFLX (179.67)
Current Short Positions (stop-losses in parentheses): DTV (40.50)
BIAS: 36% Long
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Wholesale Trade (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are slightly up heading into the open.
- Asian markets were slightly up, and Europeans markets are mixed.
- Yesterday’s price action was very choppy, but managed to rally at the end to just barely reclaim the 1227 level on the S&P – a bullish sign.
- The last four sessions has been nothing more than consolidation by the market, with an ever so slight bullish bias to it.
- I am not on ‘high-alert’ like I was yesterday, I think the likely scenarios right now is further consolidation or a new leg up in the market.
- 1216 also marks the lows for the consolidation. A break below, could mark further selling in the near-term.
- The current rally on the daily charts still has the makings of what we saw back on 9/1 which rallied for over two months.
- Dip buying will continue to be the name of the game for traders.
- The 3-day rally we’ve seen in the USD has been on very light volume.
- For the bears – Push price back below the 1227 level, close below it, and then push the markets below 1216.
- For the bulls – Build upon the 1227 level, by shooting up above 1235 and signaling a new move upwards.
Here Are The Actions I Will Be Taking:
