Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (44.99)
Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10)
BIAS: 2% Short
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Leading Indicator (10am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are up strong – over 1%.
- Asian and European markets are seeing gains of 1-2% across the board.
- Yesterday the bulls were able to avoid further selling, and keep the price action within the consolidated trading range from October.
- Today’s gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday. Watch for whether this key average acts as support, much as it acted as support for the bulls prior.
- Markets are oversold on a short-term basis, which should further help today’s bulls.
- The one thing to be weary of in this rally, is whether it is a dead-cat bounce or not. It is very typical to see these extreme bounces in the market before resuming the selling efforts.
- We’ll have POMO every day this week.
- Main goal for the bulls today will be to avoid a large and inevitable gap-fill (whether or not that’s today) and ultimately retake the 20-day moving average.
- Bears should do everything they can to break early morning lows, and fill this gap, and then get get below yesterday’s lows.
Actions I Will Be Taking:
