Current Long Positions (stop-losses in parentheses): XLF (14.02), V (68.99), INTC (19.75), ENZN (10.15), QQQQ (44.79), CSR (5.24)
Current Short Positions (stop-losses in parentheses): None
BIAS: 44% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Productivity and Costs (8:30am), Redbook (8:55am), Wholesale Trade (10am), EIA Petroleum Status (10:30am), Treasury Budget (2pm)
My Observations and What to Expect:
- Futures down well over 1%
- Europe and China both down significantly.
- Ideally it would have been much better for the bulls to have broken the 1131 mark before selling off.
- Not uncommon to fail the first test of resistance, however today’s selling, if it holds, could re-establish bearish beliefs again, since the right shoulder (1131 mark) isn’t yet broken.
- Some damage being done to the charts: Worth noting that Bearish wedge detailed in previous video web-cast I did, will be broken, upward trend-line broken, but no lower-low as of yet.
- Key support levels to watch: Friday low (1107 on S&P), Break of previous higher-low (1088 on July 30th).
- Can the bulls dip-buy once again?
Actions I Will Be Taking:
- Stop-Losses remain as it.
- CSR added to the portfolio yesterday.
- Trimmed some of my other positions yesterday, not to mention getting stopped out of INTC.
- This morning gap down is NOT fade-able.
- I’ll be scouring the charts for long-setups.
- 1080 is my price level of closing out all long positions IMMEDIATELY.
- Will look for scalping opportunites to pair my losses from today.
- Won’t short any stocks swing-trading.
