Current Long Positions (stop-losses in parentheses): TICC (9.97), SNDK (36.59), AMZN (161.90), JACK (23.16), GHL (75.95), NFLX (165.00), MCD (76.92), QID (11.92)

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

BIAS: 6% Long (-10% short considering the leverage in QID)

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Pending Home Sales Index (12:30pm), Bernanke Speaks (2pm), Consumer Credit (3pm)

My Observations and What to Expect:

  • Futures are showing some weakness prior to the employment number. 
  • Asian markets are seeing a lot of strength in trading with gains as much as 2.8%. European markets are trading with a slight negative bias to them. 
  • The S&P is clearly in a breakout mode after recently trading out of consolidation from the previous three weeks. 
  • S&P managed to close well above the 200-week moving average which has acted as major resistance to the overall market – very bullish and promising for its long-term prospects.  
  • Yesterday’s rally pushed the market above the April highs, which allows for the market to continue the long-term trend, dating back to March ’09. 
  • Today’s  employment number should play a pivotal role in the market today.   
  • Be very careful about piling on new positions at this stage of the rally – the market is overextended and well outside of its Bollinger Bands, and makes it more likely we’ll see a healthy pullback or at the very least some consolidation before moving higher. Use any weakness to add new positions to the portfolio.
  • The bears main aim is to erase at least 50-60% of yesterdays gains, which would essentially create a bearish piercing candle pattern. 

Actions I Will Be Taking:

  • Took profits in AMZN, SNDK, JACK, and GHL yesterday for some solid profits. 
  • Added two new positions at the market close yesterday – MCD and QID. QID is a short-term trade to take advantage of possible consolidation or a light market pullback. 
  • Will  not hesitate to take profits in QID if the market pulls back 0.7 to 1%. 
  • I’ll be aggressive in adding new long positions to the portfolio on any market weakness. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.