Current Long Positions (stop-losses in parentheses):
TICC (8.51), QQQQ (Hedge)
Current Short Positions (stop-losses in parentheses): SPY (113.30), DGX (50.09), FCN (36.75), URBN (34.91), OMI (29.31), HSY (49.93)
BIAS: 0% Neutral (52% Short w/o QQQQ)
Economic Reports Due Out (Times are EST): No reports due out.
My Observations and What to Expect:
- Futures are up moderately.
- Looks like another Monday morning ramp job. They are becoming quite popular these days. Six out of the last six Mondays have finished in positive territory. Going for 7-for-7 today.
- I expect the 50-day moving average at 1089 on the S&P to act as resistance today.
- Any potential rally today will likely fall short of breaking the 50-day moving average. If they do break it, then 1092 will serve as the next level of resistance (Thursday’s Highs).
- Nice short-term downward trend-line connecting lows of 7/30, 8/16 & 8/20
- Last Monday’s lows were broken on an intraday basis, but still needs to close below them.
Actions I Will Be Taking:
- Nicely hedged going into the opening bell. Will likely sell the QQQQ hedge position at the open to avoid the potential gap fill.
- The potential exists for 1-2 new positions added to the portfolio.
- Gap seems fade-able this morning.
- Scalp the market on a limited basis.
- Will focus more on swing-trade short setups instead.