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
