Current Long Positions (stop-losses in parentheses): RAH (60.75)EQY (16.75), PH (78.95), GIL (30.11), HK (18.56), VMW (82.30), RRC (41.65), NVLS (30.05)

Current Short Positions (stop-losses in parentheses): DTV (41.29), EQR (51.15), VPRT (42.37)ITT (48.01)FCN (36.74), V (77.61)

BIAS: 24% Long

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Factory Orders (10am), ISM Non-Manufacturing Index (10am)

My Observations and What to Expect:

  • Futures are flat heading into the open. 
  • Both Asian and European markets were mixed in trading. 
  • 1200 is quickly being left in the dust and the new battle ground will be the 52-week highs set in November at 1227.
  • The current rally has the makings of what we saw back on 9/1 which rallied for  over two months. 
  • Yesterday’s rally, on similar volume to that of Wednesday’s rally, offered the continuation that the bulls were seeking, and further legitimized this market rally. A push above 1227, would likely trigger another wave of short covering. 
  • Going forward I would expect the dip-buying to be back in play for investors. 
  • Dollar is at an inflection point on its current upward trend. A push below the trend would signal further bullishness for the broader markets, A bounce followed by another leg up, would pose a major problem for the bulls. 
  • For the bears – defend the resistance at the November highs. A break there, could see S&P rally as high as 1260’s and potentially into low 1300’s (best case scenario).
  • For the bulls – close above the aforementioned resistance and push the rally into overbought territory. 

Here Are The Actions I Will Be Taking:

  • Will consider adding some additional long positions to the portfolio today. 
  • Tightened the stop-loss in HK and DTV to protect current gains. 
  • Closed positions in RAH, EQY, EQR, VPRT, ITT and FCN.
  • Added NVLS, VMW, and RRC.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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