Current Long Positions (stop-losses in parentheses): TICC (8.94)
Current Short Positions (stop-losses in parentheses): None
BIAS: 3% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am), FOMC Statement (2:15am)
My Observations and What to Expect:
- Futures are at break-even with a slight negative tilt.
- 1130 level on the S&P was broken yesterday, which confirmed the inverse head and shoulders pattern.
- Very little resistance keeping the S&P from reaching 1219 (April’s highs).
- There is some minor resistance (and very minor) at 1173
- As I’ve been saying, the market is overbought in every sense of the word.
- The bear argument is pretty much dead for the time being unless yesterday’s rally was just a head-fake, but the odds of that is pretty low, in my opinion.
- FOMC Statement today will add a lot of volatility, especially in regards to expectations regarding QE2. I’ll be posting the statement here for you to see, almost immediately.
Actions I Will Be Taking:
