Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), SPY (109.07), WTFC (37.71), SLAB (44.80), CERN (83.56), ALB (43.59), HIBB (26.65)
BIAS: 81% Short
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Import and Export Prices (8:30am), Business Inventories (10am), EIA Petroleum Status Report (10:30am), FOMC Minutes (2pm)
My Observations and What to Expect:
- Futures are higher after blowout earnings from Intel (INTC), but well off their highs and continue to trade lower as the morning progresses.
- Despite yesterday’s heavy buying, my projections on this market still remain that it will move much lower in the near future.
- Volume was higher than previous days, but still below average and less than previous big down days.
- Market will always try to make you squeamish in your positions, even when you are on the right side of the market – it takes joy in sowing seeds of doubt.
- If the market opens flat or in the red, could be a prelude to a significant market reversal taking place.
- Retail report at 8:30am, should have a significant impact on the market today.
- Heavy selling at end of day yesterday is a strong bearish development. Rally is a shorting opportunity until it proves it can break the high from 6/21.
Actions I Will Be Taking:
- May add another 30% of my capital to the portfolio, resulting in 3-4 additional short positions.
- Will only hedge my portfolio if we move higher today, and would only do so at the close.
- Willing to take my portfolio up to as much as 110% short today.
- Target prices set for each position. Once/if reached, I will cover the entire position.
- No changes in my current stop-losses.
