Current Long Positions (stop-losses in parentheses): MGI (3.59), MHLD (9.18), SONE (7.25), SPY July 132 Calls
Current Short Positions (stop-losses in parentheses): None
BIAS: 16% Long
Economic Reports Due Out (Times are EST): International Trade (8:30am), Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Wholesale Trade (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are up moderately, despite a miss yet again on the jobless claims.
- Asia was flat, and Europe is showing a small amount of strength.
- I can only find one time in the last 10 years where we declined for more than 6 consecutive days (Oct. ’08), and that was in the middle of a financial meltdown.
- Prior to yesterday, the last time we sold off six consecutive days was February ’09.
- To put it mildly, a bounce is in the cards for today, and would be shocked if we don’t get it.
- To date, the bears have shown no willingness to cover their short positions, which could make the bounce a very nasty one.
- The S&P has some mild support at 1275 off of the 1/28 lows.
