Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), RAH (60.75), MENT (11.08), EQY (16.75), PH (78.95)

Current Short Positions (stop-losses in parentheses): ADBE (28.55), DTV (42.49), EQR (51.15), VPRT (42.37), TIE (17.84), ITT (48.01)GLAD (11.54)

BIAS: Neutral

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

  • Futures are down significantly – looking at losses of about 1% at the open.
  • Asian markets are mixed, while European markets are down in excess of 1%.
  • Portugal debt worries are weighing considerably on the market this morning.
  • Half day of trading today (close at 1pm), expect the volume to be considerably light.
  • Market is poised to open inside of the October consolidation area.
  • Once again, S&P is getting rejected at the all-important 1200 price level.
  • Market is consolidating of late, within a 27-point range on the S&P. which is 1200 and 1173. A break in either direction would represent a major shift in market sentiment. Right now, Neither bull or bear has a clear advantage in this market. Instead it is more like deadlock game of Tug-O-War
  • Conflict between N. & S. Korea continues to price in a lot of caution into the markets.
  • The bulls must continue to focus its efforts on breaking the 1200 point moving average. With the low volume we’re likely to see in the markets today, don’t be surprised if there is a bullish reversal off of the lows.
  • Bears should aim to wipe out as much of the gains from Wednesday as possible, and to ultimately break 1173, which would create a new leg down in this market.

Here Are The Actions I Will Be Taking:

  • Unlikely to be adding any new positions to the portfolio today.
  • Stopped out of ADBE on Wednesday at $28.55.
  • Added four stocks on Wednesday: EQY and PH (LONG), GLAD and ITT (SHORT).
  • Stop-loss tightened in MENT.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.