Current Long Positions (stop-losses in parentheses): QID (10.49), GLD (128.65), SDS (22.29)

Current Short Positions (stop-losses in parentheses): PII (75.36), T (28.74)

BIAS: 21% Short (counting QID and SDS as shorts)

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller Home Price Index (9am), FHFA House Price Index (10am), Consumer Confidence (10am)

My Observations and What to Expect:

  • Futures are slightly negative heading into the open. 
  • Asian and European markets are trading in a mixed fashion, with the exception of the Nikkei which was up 1.15%.
  • A large plate of earnings will be served up today week that includes YHOO, JNJ, DD, MMM, HOG, MMM, BLK.
  • S&P continues to find support at the lower ascending support level of the narrow price channel. 
  • Volume was noticeably weaker than it has been in recent days. 
  • 1291 acted as resistance yesterday, which is the same price level the index was unable to break through on Friday. 
  • Nasdaq continues to look much weaker than the S&P and is running into resistance still at the 10-day moving average. 
  • In order for this market to see a correction at this point, the bears need to break the 20-day moving average on the S&P.
  • A move to new highs in the market would effectively end, for now, any hopes the bears had of pushing this market lower, and instead would see more price expansion.
  • Evening star formation from 1/17-1/19 should indicate at least a short-term top is in place in this market.
  • 1261 represents the short-term ‘higher-low’ on the daily charts.
  • For the bears – Push the S&P below the 10 day moving average and outside of the narrow rising price channel.
  • For the bulls – Buy up any intraday dips, and push market above recent highs. 

Here Are The Actions I Will Be Taking:

  • I am looking to add between 2-4 new short positions that are clearly breaking down today. 
  • Closed out my positions in GLD at $130.28 for a 0.6% loss and covered PII at $75.41 for a 3.15% loss. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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