Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), RAH (60.75), MENT (11.08), EQY (16.75), PH (78.95)
Current Short Positions (stop-losses in parentheses): ADBE (28.55), DTV (42.55), EQR (51.15), VPRT (42.37), TIE (17.84), ITT (48.01) GLAD (11.54)
BIAS: Neutral
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
- Futures are mixed, and well off their overnight highs, which saw the S&P up close to 1% at one point.
- Asian markets closed with a decent amount of gains, while European markets are showing a significant amount of losses on the day.
- Friday’s market action put in a bearish harami candle pattern.
- Despite the wild price swings of late, the market continues to consolidate within a narrowing range.
- S&P remains within the October consolidation range.
- Friday’s sell-off represents another failed attempt by the bulls to rally the market beyond 1200.
- 50-day moving average is very much in play now for the bears.
- Even more important than the 50-day moving average is the 1173 level on the S&P, which a break of it, would signal a lower-low in the markets, thereby killing the upward trend line coming off of the August lows.
- The bulls must continue to focus its efforts on breaking the 1200 point price level.
Here Are The Actions I Will Be Taking:
