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

Current Short Positions (stop-losses in parentheses): TFSL (8.30), ADBE (30.10)

BIAS: 2% Short

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Consumer Price  Index (8:30am), Housing Starts (8:30am), EIA Petroleum Status (10:30am)

My Observations and What to Expect:

  • Futures are seeing moderate strength this morning after yesterday’s huge sell-off. 
  • Asian markets were mixed, and European markets are trading just the same. 
  • S&P gapped below the 20-day moving average and closed underneath it as well. 
  • Very close to putting int a “lower-low” in this market. 
  • 50-day moving average could offer some support, should it drop that far. 
  • Yesterday’s closing brought us back to the October consolidation zone. 
  • 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 very strong, which supported the price move. 
  • Main goal for the bulls today will be to keep the markets from seeing any follow through.
  • Follow through is key for the bears, as so many times this year, it has failed to do so. 

Actions I Will Be Taking:

  • Will look to add 1-2 new positions to the portfolio today (a long and short position) – with today being a travel day, that could be hampered. 
  • Closed my positions prematurely yesterday in GS, KR and BIDU. 
  • Stopped out of my positions in MCD and HTZ.
  • Tightened the stop-loss in TFSL.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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