Current Long Positions (stop-losses in parentheses): HRB (17.39), GOOG (524.00), ADI (38.99), CA (24.09), UNP (97.45), NFLX June 270 Calls, JNY (14.45), AMAT (15.49)

Current Short Positions (stop-losses in parentheses): None

BIAS: 62% Long

Economic Reports Due Out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Pending Home Sales (10am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

  • Futures are slightly lower heading into the open.
  • Asia traded in a wide range – China was down 1.31% and Japan up 1.6%. Europe is trading, on average, moderately higher. 
  • Ideal upside follow through yesterday after having broken through the critical 1340 level the day prior.
  • S&P is beginning to creep outside the upper bollingerband, which makes me more concerned with protecting profits at this point.  We could see the market pullback at least a day or two to work off overbought conditions and get back inside the upper BB.
  • Volume has increased nicely each of the past two days.
  • Some minor resistance may be found at 1370, but the more significant level is at 1430 .
  • By breaking 1340, we confirmed the inverse head and shoulders that had been in development since February ’11. Last time we confirmed a IH&S pattern was back in Sept ’10 and we rallied 220 points after the confirmation.
  • On the 30min intraday charts, watch the 1350 level for support. Strong trendline in place off of the 4/18 lows. A break below 1350 would break this level.
  • Higher-low has been established at 1294.
  • Market is overbought in the short-term.
  • My conclusion: GDP, combined with Jobless Claims will largely dictate the course of the markets today. A strong move higher, will push me to begin booking profits in certain names.

Here Are The Actions I Will Be Taking:

 

  • Stopped out of HRB yesterday at the market open at $17.39 for a 2.2% loss.
  • Tightened the stop-loss on GOOG and CA.
  • Added 2 new positions to the portfolio yesterday – AMAT at $15.85 and JNY at $14.73.
  • Tech plays are performing very well right now, and will likely be the focus of my trading going forward.
  • Will look to book gains in 1-2 positions today, to lessen my market exposure.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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