Current Long Positions (stop-losses in parentheses): None

Current Short Positions (stop-losses in parentheses): None

BIAS: 100% CASH

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Personal Income and Outlays (8:30am), Redbook (8:55am), Factory Orders (10am), Pending Home Sales Index (10am).

My Observations and What to Expect:

  • Futures are slightly lower.
  • Broke through the all-important 200-day moving average with decisiveness.
  • Next barrier is the 1136 on the S&P. Break would end the bear head and shoulders argument.
  • If the bears want to keep from losing full control of this market, it has to start pushing the markets lower now. “Put-up or Shut-up” time for the bears.
  • Market has acted very similar to the bear trap of January and February.
  • Bulls must show that it can 1) hold yesterday’s gains 2) Hold 200-day moving average.
  • Personal Outlays and Income along Pending Home Sales reports will be influencing the market in the AM.

Actions I Will Be Taking:

  • Will continue to look for 2 new long positions. Yesterday there was too much gains on the table already to initiate a new position.
  • Morning gap looks very fade-able. Needs a little more “gap” to see a trade on this.
  • Scalp opportunities using ETFs.

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