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.