Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (42.57), SNDK (36.59), AMZN (161.08), BAC (11.34), JACK (23.16), GHL (75.95)

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

BIAS: 62% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Factory Orders (10am), ISM Non-Manufacturing Index (10am), EIA Petroleum Status Report (10:30am), FOMC Meeting Announcement (2:15pm)

My Observations and What to Expect:

  • Futures are up slightly – very little overnight price action. 
  • Asian and European markets are seeing positive gains. 
  • The market did break through the 200-week moving average, albeit by less than a half point, but the MA has acted as a major barrier to the market advancing further in this rally. 
  • Volume recently hasn’t been overly strong. 
  • Still failed to close above recent highs. But today, the market is currently poised to gap above those highs. 
  • A break of recent highs should clear the way for the S&P to challenge the April highs.
  • Today’s FOMC meeting will carry huge importance in defining the ultimate direction of the market session. Expect a lot of volatility. I’ll also be sure to post the FOMC Statement at 2:15pm. 
  • Election mid-terms have seen bullish returns the last three times, and overall, mid-term election week, historically, tends to be very bullish.
  • The bears should focus their efforts in just closing below the 10-day moving average and Monday’s lows. 

Actions I Will Be Taking:

  • Stop-losses tightened in SSO and JACK. 
  • Added two new positions yesterday: JACK & GHL.
  • Stopped out of BAC yesterday. 
  • Should the market break the recent highs, may be encouraged to add another 1-2 positions to the portfolio. 
  • Not hedged going into the open.
  • Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.