Current Long Positions (stop-losses in parentheses): COOL (3.76), ONTY (6.56)
Current Short Positions (stop-losses in parentheses): None
BIAS: 5% Long
Economic Reports Due Out (Times are EST): NFIB Small Business Optimism Index (7:30am), ICSC-Goldman Store Sales (7:45am), Producer Price Index (8:30am), Retail Sales (8:30am), Redbook (8:55am), Business Inventories (10am), Bernanke Speaks (2:30pm)
My Observations and What to Expect:
- Futures are up strong this morning.
- Asia, except for Hang Seng, is seeing +1% in gains today. Europe is seeing similar results.
- The S&P formed a nice doji yesterday, indicating a temporary stalemate, after being down 7 out of the last 9 market sessions. Doji’s, like yesterday’s can often accompany changes in the current trend.
- The Nasdaq is at an inflection point, and is looking to bounce off of the 200-day moving average. Should it eventually break this level, we could see a nasty move lower in the broader markets.
- Today will represent a lot of short covering by the bears, which usually leads to a snow-ball effect. The key for the bulls, will be to turn this into a multi-day rally, and not just a one-time event.
- The market continues to break down, closing in on the S&P price support at the 1250 (3/16 lows) level and the 200-day MA at 1253.
