Current Long Positions (stop-losses in parentheses): XLF (14.02), V (68.99), ENZN (10.15), QQQQ (44.79), TICC (8.42)
Current Short Positions (stop-losses in parentheses): SPY (Hedge)
BIAS: 6% Short
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Retail Sales (8:30am), Consumer Sentiment (9:55am), Business Inventories (10am)
My Observations and What to Expect:
- Futures slightly negative
- Lots of reports coming out this morning affecting the market.
- Not sure whether the morning gap is fade-able until the CPI and Retail Sales reports are released.
- Price is now below 50 and 200 day moving average on the S&P. Very Bearish.
- A new, more significant down trend-line is forming with April highs and Monday’s highs.
- Same note, the bottom channel parallel to the previous mentioned trend-line is made by connecting the previous two lower-lows. (I’ll post on this later today).
- Market has an innate ability to make traders feel like a puppet, with the major swings we keep seeing in both directions.
- Market quickly heading into oversold territory. Volume from past few days have been higher than it has the previous week but still weak though overall.
Actions I Will Be Taking:
- Stop-Losses remain as it. But will begin scaling out of my long positions throughout the day.
- TICC will remain in the portfolio.
- My large SPY position still remains in the portfolio as a hedge.
- May add a few new short positions in the portfolio today.
- Scalp where/if the opportunity exists.
- If I fade the gap, won’t hold through Consumer Sentiment.
