Current Long Positions (stop-losses in parentheses): CX (9.76), CERN (90.59), VPHM (17.77), AIT (30.65), NTRI (20.64), SNE (34.28)

Current Short Positions (stop-losses in parentheses): DTV (40.33)

BIAS: 29% Long

Economic Reports Due Out (Times are EST): Leading Indicators (10am)

My Observations and What to Expect:

  • Futures are are mixed.
  • Asian markets were flat/mixed, while European markets are showing some light selling. 
  • Today is options expiration (quadruple witching) and on such days, market action can become very erratic and unpredictable. 
  • Market showed a respectable bounce to the first wave of selling yesterday, as I thought it would, and bounced right off of the 10-day moving average and held its support just as it did most times during the Sept/Oct rally. 
  • S&P is set up nicely to make new rally highs in the coming days. 
  • All market indicators that I closely follow, including T2108 and NYSE Reversal Indicator, support the market rallying further in the short-term. 
  • Even so, the bulls are not far removed from the 1227 level, and that remains the support level that they must hold, 
  • Below 1227, should we break it, the key support level for the S&P would become 1216 – the lows of previous consolidation.
  • Dip buying will continue to be the name of the game for traders.
  • For the bears – the lack of follow through, on Wednesday’s selling, is troubling, and above all else, the bears will need to, at the very least, defend recent highs – failure to do so, could propel the S&P in to the 1260’s. 
  • For the bulls – continue the  dip buying, like we saw yesterday, and extend the rally beyond recent highs, to avoid further consolidation in the markets. 

Here Are The Actions I Will Be Taking:

  • May add 1 additional position to the portfolio today. 
  • All stop-losses remain as is. 
  • Added SNE on a pullback and NTRI on a breakout to the portfolio yesterday.
  • Closed my position in VPHM at $17.77 for a 3.9% gain. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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