Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), CEL (32.89)

Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10), DTV (43.30)

BIAS: 2% Short

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are down moderately.
  • Asian markets were mixed and European markets are showing moderately levels of weakness as well.
  • Yesterday’s rally was strong, but it failed on three separate occasions to retake the important psychological 1200 price level on the S&P.
  • The bulls did manage to close above the 20-day moving average but only by two-tenths of a point, which is hardly convincing at all. 
  • Today’s  gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday.
  • If the early morning selling holds throughout the day, then it will be painfully obvious that yesterday was a dead-cat bounce.
  • We’ll have POMO every day this week.
  • For the bulls, today should be about dip buying and pushing this market beyond 1200.
  • Bears should aim to fill yesterday’s gap up.

Actions I Will Be Taking:

  • Will look to add 2 new positions to the portfolio today (a long and short position).
  • Tightened the stop-loss in HRS.
  • Added CEL and DTV to the portfolio yesterday.
  • May tighten my position further in HRS considering the potential for a evening doji star candle pattern today.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

You Might Like

  • Learn to trade within your means.

    Stop Trying to Hit Home Runs: Start Trading Within Your Means

  • Avoiding traps on stock breakout plays.

    How to Trade Breakouts Without Getting Trapped

  • how to manage your swing trades when it comes to headline risk.

    Managing Headline Risk: How to Survive the News Cycle Without Losing Your Mind