Current Long Positions (stop-losses in parentheses): TICC (10.28), MCD (77.74), BIDU (104.74), CTXS (64.13), MENT (11.14), GS (160.40), HRS (44.99), HTZ (11.78), KR (22.36)

Current Short Positions (stop-losses in parentheses): TFSL (8.69)

BIAS: 57% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Producer Price Index (8:30am), Redbook (8:55am), Treasury International Capital (9am), Industrial Production (9:15am), Housing Market Index (10am)

My Observations and What to Expect:

  • Futures are seeing moderate weakness. 
  • Asian markets closed in the red, while European markets are experiencing heavy selling. 
  • S&P closed just a shade above the 20-day moving average, however the market is poised to open well below that level. 
  • 200-week moving average sits at 1191, which if that breaks, would represent a shift in the market outlook. 
  • We’ll have POMO every day this week. The full schedule can be found here.
  • So far QE2 has been a “sell-the-news” event.
  • Yesterday’s volume was well-below average. 
  • Main goal for the bulls today will be to bounce off of the 20-day moving average and thus avoid a close below it. 
  • Bears should aim to close below 20-day moving average at 1195, and the lows from Friday. Ideally, a close below 1183, would cause a lot of problems for the bulls.

Actions I Will Be Taking:

  • Will look to add a new short position to the portfolio to add a bit of a hedge to the portfolio. 
  • Stopped out of MENT and CTXS yesterday. 
  • If the market closes below the 20-day moving average, I will close out my long positions as a result.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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