Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (32.34), WTFC (37.71), SLAB (44.80), CERN (83.20), ALB (43.59), HIBB (26.65), WRC (40.95)
BIAS: 89% Short
Economic Reports Due Out (Times are EST): Housing Market Index (10am)
My Observations and What to Expect:
- No major economic reports due out today that would single-handedly shift/influence market sentiment.
- Futures up moderately prior to open.
- With no news, morning bullishness is a fade-worthy trade on gap-up
- Friday’s sell-off engulfed six previous trading sessions = bearish
- Still overbought on S&P and other indices.
- Volume on Friday was higher than all previous 9 trading sessions.
- Previous higher volume day occurred on key reversal day that occurred on 7/1/10
- Series of previous lower-highs in place…perfectly.
- If series of 9 day market reversal pattern remains intact, we could be on only day 2 of 9 selling days.
- Earnings should be main market driver this week with big names reporting.
Actions I Will Be Taking:
- Look to add one more position to my portfolio if the market doesn’t sell-off right away. Preferably an index fund, maybe even a 2x.
- Will look to hedge portfolio with an ultralong if the market gets suddenly bullish and bounces through significant intraday resistance levels.
- May scalp a trade to the short side if the opportunity presents itself.
