Current Long Positions (stop-losses in parentheses): CX (9.76), CERN (93.77), AIT (30.65), NTRI (20.64), SNE (34.28)

Current Short Positions (stop-losses in parentheses): DTV (39.71)

BIAS: 29% Long

Economic Reports Due Out (Times are EST): None.

My Observations and What to Expect:

  • Futures are are up moderately.
  • Asian markets were all down, while European markets are showing strength of about 1%. 
  • Last week was flat, and allowed the markets to consolidate, as was needed. 
  • The S&P is set up well in the short-term to see a move higher. 
  • The 10-day moving average continues to offer support, which is similar to the tendency of the S&P during the Sept/Oct rally. 
  • New short positions in the portfolio offer a minimal reward at this juncture. Focus should primarily be to the long-side, waiting for price to indicate a change in market sentiment. 
  • A rally to the 1260 level seems likely at this point. 
  • 1239 is a short-term support level that, should the market break and close below that level, could induce further selling. 
  • All market indicators that I closely follow, including T2108 and NYSE Reversal Indicator, support the market rallying further in the short-term.
  • Below 1227, should we break it, the key support level for the S&P would become 1216 – the lows of previous consolidation.
  • For the bears – need to push the markets below 1239. Expectations at this point must be kept to a minimum, and to foil the bullish intentions of the market, will require baby-steps at this point. 
  • For the bulls – push the market above 1246 and close above it. May be all the reason the market needs in the short-term to rally into the end of the year. 

Here Are The Actions I Will Be Taking:

  • May add 1-2 additional position to the portfolio today.
  • Stop losses in DTV and CERN have been tightened. 
  • Will be closely watching the price action in Ford (F) for a possible breakout entry. 
  • No new positions added on Friday. 
  • May look to take profits in CERN today. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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