Current Long Positions (stop-losses in parentheses): QQQQ (Hedge)

Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), SPY (109.07)

BIAS: Neutral

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), ICSC-Goldman Store Sales (7:45am), Redbook (8:55am)

What to Expect:

  • A lot of people used yesterday’s rally to take profits, evident by the continuous selling after the strong open. This makes me doubt the sustainability of any major rally in the near-term.
  • Yesterday seemed to be more about the bears getting squeezed at the open, followed by profit taking and more shorting throughout the day.
  • Futures are slightly negative as of this post, which makes for an easy and fillable gap at the open (albeit, a small one).
  • Could see some funds start positioning themselves with with earnings kicking off next Monday (7/12) with Alcoa earnings after the bell. This could add some whipsaw action in the markets until then.
  • No forseeable catalysts on the horizon that could positively affect the markets
  • Very possible for the European problems to begin resurfacing – It’ll be interesting how much of a a role it takes in the markets as most people will be focused on earnings reports for inspiration.
  • Some negative European news or events seem bound to hit the market here soon – it has been quiet here for a few days, and just seems bound to resurface again.
  • Euro seems prime for a pullback after a strong rally – but ironically, the USD doesn’t seem ready for a bounce at all.
  • Oil continues to base near its lows, the past few days.

Actions I Will Be Taking:

  • Will leave ESV, MR, and SPY alone today – my only  three remaining short positions left in the portfolio.
  • Main concern today, is how long do I stay in the QQQQ. A break below today’s lows, would likely cause me to sell the position fairly quickly.
  • Won’t be looking to add any new short positions to the portfolio right now – heavily oversold and need to work those conditions off some. A 30-40 point rally on the S&P would allow for me to reload my short positions.

***Be on the look out for some future improvements to the website, including some new videos that I will be doing, trading education series, some tools of the trade of mine, and also dissecting some past trades that I have done as well.***