Current Long Positions (stop-losses in parentheses): TICC (9.62), DTV (42.34), EOG (97.52), ESRX (46.42), AAPL (305.59), SHLD (72.95)
Current Short Positions (stop-losses in parentheses): SDS (28.55)
BIAS: 56% Long
Economic Reports Due Out (Times are EST): No reports scheduled.
My Observations and What to Expect:
- Futures are trading flat.
- Asian markets were mixed and European markets are seeing some mild selling.
- S&P managed to make new intraday-highs yesterday, but couldn’t hold them – instead we have an indecisive doji candle.
- We’ve had these doji candles quite a few times since bottoming in early September, but they marked signs of consolidation before advancing higher, not a topping pattern.
- We also managed to hold the lows from Wednesday (very important).
- Filled the gap down from Tuesday nicely, yesterday.
- Amazon.com (AMZN) earnings not having any significant impact on the indices in the early going (unlike Apple’s earnings).
- Wouldn’t pull the plug quite yet on this market – bulls show that they are still willing to buy the dip yesterday. Right now, I believe what we are seeing is consolidation – not a topping pattern as some are so quick to say.
- Bears need to keep the bulls from buying the dips every time there is a sell-off. Ultimately it needs to push the market back below Tuesday’s lows. Until then the bulls remain in control of this market.
- Essentially we are a range-bound market since 10/12 between 1167 and 1190.
- Some earnings reports due out before the bell: Verizon (VZ), Honeywell (HON), Ingersoll-Rand (IR), Schlumberger (SLB), Exelon (EXC).
Actions I Will Be Taking:
