Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), CEL (32.89)
Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10), DTV (43.30)
BIAS: 2% Short
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
- Futures are down moderately.
- Asian markets were mixed and European markets are showing moderately levels of weakness as well.
- Yesterday’s rally was strong, but it failed on three separate occasions to retake the important psychological 1200 price level on the S&P.
- The bulls did manage to close above the 20-day moving average but only by two-tenths of a point, which is hardly convincing at all.
- Today’s gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday.
- If the early morning selling holds throughout the day, then it will be painfully obvious that yesterday was a dead-cat bounce.
- We’ll have POMO every day this week.
- For the bulls, today should be about dip buying and pushing this market beyond 1200.
- Bears should aim to fill yesterday’s gap up.
Actions I Will Be Taking:
