Current Long Positions (stop-losses in parentheses): ENZ (4.05), SPY July 130 Puts
Current Short Positions (stop-losses in parentheses): STNG (10.39)
BIAS: 1% Long
Economic Reports Due Out (Times are EST): Consumer Sentiment (9:55am), ISM Manufacturing Index (10am), Construction Spending (10am)
My Observations and What to Expect:
- Futures are flat and mixed heading into the open.
- Asia saw trading gains range from 0.5% up to 1.5%. Europe is currently seeing slight gains.
- S&P is getting into dangerous territory in the short-term for initiating new long positions.
- We nearly opened outside of the upper Bollinger-Band, and proceeded to move about 1% higher, which is highly unusual and very difficult to do and sustain. 80% of the price action was outside the upper band.
- Often times though we’ll see another day of follow through when we breakout of the upper band, but ultimately, I expect we’ll see some sort of move back inside the upper band in the next 1 to 3 days. Upside is very limited here.
- Short-term we are extremely oversold.
- The strength and health of this market bounce off of the 200-day has been very encouraging, and ultimately, I think this market will continue to move higher in the weeks ahead.
