Current Long Positions (stop-losses in parentheses): GOOG (533.00), NFLX June 270 Calls, AAPL (343.95), NTAP (52.45), TZOO (72.45), B (24.90), PEP (68.75), APH (55.20), HPQ (40.65), RSH (15.93)
Current Short Positions (stop-losses in parentheses): None
BIAS: 82% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), International Trade (8:30am), EIA Petroleum Status Report (10:30am), Treasury Budget (2pm)
My Observations and What to Expect:
- Futures are slightly higher heading into the open.
- Asia was mixed in trading, while Europe is trading on average about 0.5% higher so far.
- Rally from the last two days is looking very similar to the rallies that we saw off of the 3/16 & 4/18 lows.
- We reclaimed the 10-day moving average on the S&P yesterday. The market is now at a juncture where is has to push on to new recovery highs which is above 1370 on the S&P.
- A retracement and break below 1329 would signal a shift in market sentiment
- 1340 continues to be a key breakout support level.
- We broke out of the ‘megaphone’ shaped downward channel on the 30 min S&P chart yesterday, rendering it irrelavent.
- Volume continues to be very light this week. Will continue to watch this. No concern yet.
- By breaking 1340, we confirmed the inverse head and shoulders that had been in development since February ’11. Last time we confirmed a IH&S pattern was back in Sept ’10 and we rallied 220 points after the confirmation.
- My conclusion: I think we should see another 1-2 days of the market rallying before we need to start scaling back on the positions some.
Here Are The Actions I Will Be Taking:
