Current Long Positions (stop-losses in parentheses): None

Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (32.80), WTFC (37.71), SLAB (44.80), CERN (83.56), ALB (43.59), HIBB (26.65), LYV (11.95), WRC (40.95)

BIAS: 93% Short

Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Treasury International Capital (9am), Consumer Sentiment (9:55am)

My Observations and What to Expect:

  • Futures up slightly – been vacillating between positive and negative territory.
  • Four major news pieces hit late yesterday: 1) Google profit misses 2) Goldman Settles with SEC 3) BP caps oil leak 4) Financial Reform passes. Futures reaction is muted to all of these.
  • CPI and Consumer Sentiment will provide further direction for the markets today.
  • Reversals in markets of late have occurred in 9 day intervals – today marks day #9.
  • Two days of straight doji’s could be a problem for bulls, much like it was a few weeks ago when we got three doji’s in a row before selling off immediately thereafter.
  • Yesterday’s rally in to the close erasing significant losses could re-inspire bulls to push this market even higher.
  • Market is on uncertain grounds – control is up in the air.

Actions I Will Be Taking:

  • Still like to add one more short position to the portfolio.
  • LYV covered yesterday at $9.91 for a 12.1% gain
  • Max out at 105% short. Been watching IWM for a potential short entry.
  • Watch initial market action – will hedge if a break of 30 minute candle to upside occurs on S&P after first 30 minutes. Otherwise, a new high thereafter would also trigger a similar move. Will likely use an ultra-long ETF like SSO or QLD to hedge.
  • Tightened the stop-loss in MR to 32.80