Current Long Positions (stop-losses in parentheses): TICC (8.51)

Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (45.95), FCN (35.01), URBN (32.73), OMI (27.76), ADBE (29.78), DDS (22.16), BIDU (83.39)

BIAS: 52% Short

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Chicago PMI (9:45am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), FOMC Minutes (2pm), (Farm Prices (3pm)

My Observations and What to Expect:

  • Futures down moderately.
  • A lot of reports due out today – none more important than Consumer Confidence.
  • FOMC Minutes could add additional jolt to the markets, depending on its language.
  • Bears need to close below 1039. Twice last week the market have bounced at these levels.
  • Bulls need to close above 1065 to inspire some more buying.
  • Nice Downtrend from 8/9 with short-term lower-highs on 8/18 and 8/27.
  • Bears need to see more volume pouring in on its down-days to get the ultimate sell-off it seeks.

Actions I Will Be Taking:

  • Unlikely to be adding any additional short positions to the portfolio today.
  • New stop-losses posted above in DDS and DGX.
  • Don’t expect to hedge my portfolio today but will if the bulls show similar buying behavior to Friday’s rally. 
  • Will focus more on scalping today, particularly if we trade sideways.
  • Closed out URBN @ 30.74 for a 9.2% gain.
  • Shorted BIDU yesterday at $78.89

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