Current Long Positions (stop-losses in parentheses): HDY (4.12)

Current Short Positions (stop-losses in parentheses): STNG (10.39)

BIAS: Neutral

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Chicago PMI (9:45am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

  • Futures are slightly higher heading into the open. 
  • Asia finished with gains ranging from 0.2% up to 1.5%, while Europe is overall, slightly green. 
  • S&P is attempting to put together its fourth consecutive day of gains.
  • Watch the 50-day moving average at 1317 for resistance, and more so the descending upper channel line, which will provide heavy resistance at 1320. 
  • Today we’ll see the 10-day cross the 20-day moving average to the upside, which is a good sign the technical damage on the S&P is slowly getting repaired. 
  • I would be careful about piling into a lot of long positions here in the short-term, as the bears will at some point try to initiate new short positions in hopes of resuming the downward trend, and with a 40-point rally in the S&P in the last three days off of the lows, we are likely due for at least some pullback/consolidation.

  • Watch for some unpredictable price action with it being quarter/month end today. 
  • We managed to create a ‘higher-high’ on the S&P yesterday helped to effectively end the downward trend that began on 5/2. 
  • Nasdaq formed a shooting star pattern yesterday, which could be ominous of some exhaustion by the bulls in the short-term. 
  • NYSE Reversal Indicator shows us that a rally over the next couple of weeks is likely.
  • My conclusion: Bullish on an extended move going forward, but wouldn’t be surprised to see some profit taking or  a pullback over the next couple of days. 

Here Are The Actions I Will Be Taking:

  • Held HDY that I bought into yesterday. Will likely close this position out at some point today. 
  • Breakout plays continue to be a difficult trade this month, as a large number of them seem to head fake after breaking out initially. 
  • Will continue to day-trade the market with my focus being on small cap stocks.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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