Current Long Positions (stop-losses in parentheses):Â HDY (4.12)
Current Short Positions (stop-losses in parentheses): STNG (10.39)
BIAS: Neutral
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Chicago PMI (9:45am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are slightly higher heading into the open.Â
- Asia finished with gains ranging from 0.2% up to 1.5%, while Europe is overall, slightly green.Â
- S&P is attempting to put together its fourth consecutive day of gains.
- Watch the 50-day moving average at 1317 for resistance, and more so the descending upper channel line, which will provide heavy resistance at 1320.Â
- Today we’ll see the 10-day cross the 20-day moving average to the upside, which is a good sign the technical damage on the S&P is slowly getting repaired.Â
- I would be careful about piling into a lot of long positions here in the short-term, as the bears will at some point try to initiate new short positions in hopes of resuming the downward trend, and with a 40-point rally in the S&P in the last three days off of the lows, we are likely due for at least some pullback/consolidation.
