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

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

BIAS: 100% Cash

Economic Reports Due Out (Times are EST): New Home Sales (10am)

My Observations and What to Expect:

  • Friday’s follow through was demoralizing for the bears – they have no case at this point from a technical standpoint.
  • Bulls in full control of this market though major swings in both directions will likely continue.
  • Breaking through 1100 on the S&P on Friday was a big deal.
  • Next step is to break through 1106 and 1131 on the S&P.
  • Market now has higher-high and higher-low in place = very Bullish.
  • We are overbought right now – True bull markets can sustain those conditions for extended periods of time. Definitely too early whether that is the case here.
  • How eerily similar this market has become to the bear trap from 1/20/10 through 3/10/10.
  • Futures just slightly lower – expect bulls to buy the dip at some point.
  • I have mixed ‘feelings’ toward this market right now. But technically the charts now point to a greater move upward. I’m going to wait for a good entry before jumping on the bandwagon.

Actions I Will Be Taking:

  • Will not initiate any new swing trades today.
  • Will look more for scalping opportunities using ETF Index Funds
  • Continue to wait for the market to pullback before initiating long swing trades.
  • This will be a good day for me to take a step back from swing trading and review old and new charts, journal my lessons learned and get ready to jump back into swing trading in the days ahead.