Current Long Positions (stop-losses in parentheses): VMW (86.90), BIDU (105.80), ESV (48.75), CX (9.56)

Current Short Positions (stop-losses in parentheses): DTV (40.50)

BIAS: 21% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are up slightly heading into the open.
  • Asian markets were mixed while European markets are showing some strength.
  • We are well-off the 1227 support level, with the next level of resistance between 1255 and 1260. 
  • The current rally has been more of a slow melt-up. 
  • While there is still more room for the bulls to run in the days and weeks ahead, I think the upside is limited to about 20-30 points higher before we see a period of consolidation. 
  • Friday was the most significant move that we saw last week, but it also represented the lowest level of volume on an up-day (out of four). 
  • Below 1227, should we break it, the key support level would be come 1216 – the lows of previous consolidation. 
  • Despite being overbought in the short-term, bullish rallies have the ability to remain so, far longer than we expect it to. 
  • The current rally on the daily charts has the makings of what we saw back on 9/1 which rallied for over two months.
  • Dip buying will continue to be the name of the game for traders.
  • Dollar looks more and more like it is preparing for another leg down. 
  • For the bears – Push back below 1227 and close beneath it, is an absolute must, with a goal thereafter of 1216 then 1200.
  • For the bulls – At the very least, consolidate near recent highs, with a desirable goal being a push to the 1260’s. 

Here Are The Actions I Will Be Taking:

  • Will look to add 1, possibly 2, new trades to the portfolio today.
  • Further strength in the market will likely stop me out of DTV.
  • Bought and sold my position in BSX Friday, for a gain over 2.5% after becoming well overextended on the daily chart. 
  • Stop-Loss has been tightened in VMW to secure 2.5% in gains. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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