Current Long Positions (stop-losses in parentheses): GOOG (529.00), NFLX June 270 Calls, AAPL (343.95), SSO (53.99), AN (33.67), SLV (32.99), NTAP (50.98)

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

BIAS: 42% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are slightly higher heading into the open.
  • Asia was mixed seeing returns between -0.7% to +0.8%. Europe is trading -0.7% lower on average.
  • Friday was a disappointment for the bulls – in a major way. We closed at the significant 1340 price level, but gave up 14 points of gains on the S&P – walking away with only 25% of the potential gains on the day. 
  • Greece leaving the EU drove the markets down off of its highs, and will likely play a key role in market sentiment. This causes the Euro to go down against the dollar, and when the dollar spikes, like it has over the last 3 days, equities tend to weaken.
  • The last two days of trading has revealed that there is support at the 20-day moving average, which currently sits at 1335. 
  • No significant patterns on the 30min S&P chart.
  • Volume levels dropped back down on Friday in line with the averages from the last 3 weeks of trading.
  • I am still looking for a similar response to the markets after bouncing off of the 3/16 lows.
  • By breaking 1340, we confirmed the inverse head and shoulders that had been in development since February ’11. Last time we confirmed a IH&S pattern was back in Sept ’10 and we rallied 220 points after the confirmation.
  • Higher-low has been established at 1294. Look for this pullback to establish the next higher-low.
  • My conclusion: As disappointing as Friday was for the bulls, there has been no significant damage done to the S&P chart as this juncture. As a result, I am still positioning myself for a market bounce.

Here Are The Actions I Will Be Taking:

 

  • Closed out SSO for a 0.4% gain (mismanaged this position), closed out SLV for a 0.4% loss, on the heels of uncertainty in the Euro.
  • Added NTAP to the portfolio on Friday at $52.76.
  • Raised the stop-loss in GOOG.
  • Will look to add as many as 2-3 new positions to the portfolio today.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

You Might Like

  • The rise of the retail trader in the stock market.

    The Retail Trading Revolution: How Small Investors Are Reshaping the Stock Market

  • fading the gap

    Fading the Gap: How Large Overnight Moves in SPY and QQQ Play Out During the Trading Day

  • how to trade a bear flag

    How to Trade a Bear Flag