Current Long Positions (stop-losses in parentheses): MWV (26.37), MMM (85.55), FCX (118.75), FSLR (135.30), FFIV (140.95), SLB (81.35)
Current Short Positions (stop-losses in parentheses): None
BIAS: 35% Long
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Retail Sales (8:30am), Industrial Production (9:15am), Consumer Sentiment (9:55am), Business Inventories (10am)
My Observations and What to Expect:
- Futures are showing moderate weakness.
- Asian markets were mixed while European markets are trading with some weakness.
- Price action that we’ve seen since Wednesday is very similar to the price action from 1/3-1/5. If that is the case, we could see some strength off of the morning lows today.
- No major price-pattern resistance overhead, instead it is coming in the form of a narrow channel that the market has been trading within since 12/1 and also an upper bollinger band that currently rests at 1288 on the S&P (see Wednesday’s market wrap-up for more detail).
- There should be some support at 1278 on the S&P.
- 1261 represents the short-term ‘higher-low’
- Volume continues to be average, with no developing trends or concerns when examining it.
- The more long-term trend-line dating back to 9/1 currently has support at 1242.
- For the bears – Follow through on yesterday’s negative finish and close below Wednesday’s lows.
- For the bulls – Show the “Buy-the-Dip” theory is still in full force and close the week out at new highs.
Here Are The Actions I Will Be Taking:
