Current Long Positions (stop-losses in parentheses): URZ (2.99), RPTP
Current Short Positions (stop-losses in parentheses): None
BIAS: 100% Cash
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Consumer Credit (3pm), Bernanke Speaks (3:45pm)
My Observations and What to Expect:
- Futures are flat heading into the open.
- Asia, overall was mixed in trading, but did show some strength on the day, while Europe is seeing gains range from 0.2% to 0.5%.
- Yesterday, the technical picture only got worse, as the S&P managed to close well below the 1294 level, and thereby establish a lower-low in the market.
- As a result, we are officially in a downward trend. The rally we saw off of the September lows, and onward, is dead.
- We are extremely oversold, on all time-frames, and as a result, well-overdue for a bounce. I expect to see a lot of shorts run for cover when this occurs, and possibly give the market a nice 2-3% pop before running into any resistance.
