Current Long Positions (stop-losses in parentheses): TICC (10.28), MCD (77.74), BIDU (104.74), GS (160.40), HRS (44.99), HTZ (11.78), KR (22.36)
Current Short Positions (stop-losses in parentheses): TFSL (8.30), ADBE (30.10)
BIAS: 2% Short
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Consumer Price Index (8:30am), Housing Starts (8:30am), EIA Petroleum Status (10:30am)
My Observations and What to Expect:
- Futures are seeing moderate strength this morning after yesterday’s huge sell-off.
- Asian markets were mixed, and European markets are trading just the same.
- S&P gapped below the 20-day moving average and closed underneath it as well.
- Very close to putting int a “lower-low” in this market.
- 50-day moving average could offer some support, should it drop that far.
- Yesterday’s closing brought us back to the October consolidation zone.
- We’ll have POMO every day this week. The full schedule can be found here.
- So far QE2 has been a “sell-the-news” event.
- Yesterday’s volume was very strong, which supported the price move.
- Main goal for the bulls today will be to keep the markets from seeing any follow through.
- Follow through is key for the bears, as so many times this year, it has failed to do so.
Actions I Will Be Taking:
