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.