Current Long Positions (stop-losses in parentheses): PH (78.95), HK (18.56), VMW (82.30), RRC (44.59), NVLS (31.78), FINL (18.60)

Current Short Positions (stop-losses in parentheses): DTV (41.12), V (77.61), GOOG (590.10)

BIAS: 4% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are slightly negative heading into the Monday open. 
  • Both Asian and European markets are mixed in trading.
  • 1200 will act as support for the markets, while 1227 is the major battleground currently between the bulls and bears. 
  • A pullback or at the very least some consolidation in the markets seems to be in the cards this week, before moving back up again. Typically pullbacks in a strong, trending market are very quick, and don’t give bulls a huge opportunity to jump in at the lower prices they seek. 
  • Intraday charts, particularly the 30min and 60min on the S&P show a very overextended market. 
  • A break of the November highs could send the market up into the 1250’s. 
  • Volume has been average during this three day rally, with Friday’s volume being well below the average – perhaps showing some exhaustion by the bulls. 
  • The current rally has the makings of what we saw back on 9/1 which rallied for  over two months.
  • Going forward I would expect the dip-buying to be back in play for traders.
  • Dollar failed to hold their trendline, and instead moved much lower instead. 
  • For the bears – defend the resistance at the November highs and close below the Friday lows.
  • For the bulls – pullback/consolidation is a given in the near-term, avoid giving back too much of the day’s gains. 

Here Are The Actions I Will Be Taking:

  • Will consider adding some additional long positions to the portfolio today. 
  • Closely monitor my short positions, especially GOOG in light of Groupon bid rejection that may lift shares. 
  • Tightened the stop-losses in DTV, RRC and FINL.
  • Sold out of my NVLS position in the premarket, after a downgrade was received. No desire to risk losing my profits on the position. 
  • Closed positions in HK, PH, V, NVLS, except for V, all of them were for solid gains. 
  • Added FINL and GOOG to the portfolio. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

You Might Like

  • The rise of the retail trader in the stock market.

    The Retail Trading Revolution: How Small Investors Are Reshaping the Stock Market

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag