Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), WTFC (37.71), SLAB (44.80), CERN (83.56), ALB (43.59), HIBB (26.65), LYV (11.95), WRC (40.95)
BIAS: 103% Short
Economic Reports Due Out (Times are EST): Producer Price Index (8:30am), Empire State Manufacturing Survey (8:30am), Jobless Claims (8:30am), Industrial Production (9:15am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- JPM reported earnings that beat street estimates, which resulted a small pop in the pre-market. Google reports after the bell.
- Jobless Claims and Producer Price Index hold today’s trump card.
- Futures up slightly – very fillable gap unless jobs & PPI create a major price swing.
- Volume on S&P was almost equal with the volume level on previous trading session. Bulls are not behind this rally – likely more to do with short covering than anything else.
- Doji candle yesterday was a good sign the markets may be starting to slow down a bit.
- Strong Jobless Claims + Strong PPI + Good JPM Earnings = Huge day in the market today (+1-2% or more)
Actions I Will Be Taking:
- Will likely add one more short position to the portfolio if we see a major breakdown in the market today.
- Willing to commit 113% of my portfolio to the short side.
- If market shows no gumption to move lower, I will hedge portfolio with a large QID position to move bias back to 0%
- A break above the 1130 level/ previous high, would cause me to close my short positions out.
- Target prices set for each position. Once/if reached, I will cover the entire position.
- No changes in my current stop-losses.
