Current Long Positions (stop-losses in parentheses): ECA (34.45), AAPL (334.75), SU (44.68), ERTS (19.58)

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

BIAS: 40% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications &7am), EIA Petroleum Status Report (10:30am), Treasury STRIPS (3pm)

My Observations and What to Expect: 

  • Futures are moderately higher going into the open.
  • Asian Markets saw returns range from -0.3% up to 1.1%. European markets were moderately higher.
  • For the third straight day, the S&P is really struggling with the 1332 level in the market. Though it seems fine with breaking it on an intraday basis, it doesn’t seem able to hold it into the close.
  • Watch for a close below 1328, to determine whether this market may see additional seeing in the short-term.
  • Volume continues to fall in line with what we’ve see over the last three weeks.
  • Recent consolidation, to a minor extent is helping to work off overbought conditions. 
  • The last time we saw the 10-day MA cross through the 20 and 50-day MA in back-to-back days, the S&P exploded for a 110+ point move before seeing any type of pullback.
  • If we close decisively above 1332 today, we’ll likely see additional follow through in the form of an extended move in the markets.
  • A close above 1332 would technically break the downtrend the market has been in since 2/18/11.
  • After 1332 is broken the next level of resistance is 1344 on the S&P.
  • My conclusion: While there is no reason to believe the market won’t continue to march higher going forward, I believe we could see a few days of profit taking on the horizon.,

Here Are The Actions I Will Be Taking:

 

  • Bought AAPL at $338.18, ERTS at $19.99, and $SU at $45.68 yesterday.
  • Will look to book some gains in my existing positions today on market strength, and also look for other trading opportunities to the long side.
  • Will hold off buying anything in the first 30 minutes today.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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