Current Long Positions (stop-losses in parentheses): TICC (8.51), EUO – UltraShort Euro (22.25)

Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (47.10), FCN (35.01), URBN (33.94), OMI (27.76), HSY (48.02), ADBE (29.78)

BIAS: 63% Short

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), New Home Sales (10am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)

My Observations and What to Expect:

  • Futures are slightly down. 
  • New Home Sales will have a significant impact on the market today. Especially after yesterdays Existing Home Sales report was so dismal.
  • Durable Goods should also be closely watched.
  • S&P broke and closed below critical 1056 support level on the S&P.
  • Any near-term bounce in the S&P will likely struggle to go higher than 1100, and 1070 realistically.
  • Support levels for bears to break on S&P is 1040 (Neckline of Head and Shoulders pattern), and 1010 (July lows).

Actions I Will Be Taking:

  • No hedge position this morning.
  • Won’t be looking to add any new swing trades to the portfolio today.
  • Tightened stops in SPY, DGX, FCN, HSY, OMI, URBN
  • Hedge if the market looks to bounce today.
  • Another down day today, and I will look to book gains in exhausted short positions.
  • Will only scalp in very obvious trade setups with high probabilities for success.
  • Main focus will be swing-trading.