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), BAC (11.02)

Current Short Positions (stop-losses in parentheses): DTV (42.55), EQR (51.15), VPRT (42.37), TIE (17.84), ITT (48.01) GLAD (11.54), FCN (36.74)

BIAS: 18% Short

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), Farm Prices (3pm)

My Observations and What to Expect:

  • Futures are down slightly. 
  • Asian markets finished the day down, with the Nikkei down 1.9%. European markets are mixed. 
  • Despite the market finishing down yesterday, the market showed a lot of intraday strength rallying off of the 1173 price level. 
  • Even with recent market weakness, dip buying is not dead as of yet, though the last three hammer candles have been met with a significant sell-off the following market session. 
  • A bearish descending triangle is forming on the S&P, signaling that a break to the downside could be imminent. 
  • S&P continues to find support from the October consolidation range. 
  • We dipped below the 50-day moving average, but quickly rebounded to finish well above it. 
  • The only price level the bears need to concern themselves with is 1173. Close below it, and the upward trend line from the August lows is dead. 
  • For the bulls, aim for 1200 and close above it, which would also represent the 20-day moving average as well. 

Here Are The Actions I Will Be Taking:

  • Will add two new positions to the portfolio (1 long, 1 short).
  • Stop losses remain as is.
  • No new positions added on Friday.
  • Added BAC (Long) and FCN (Short) to the portfolio yesterday, near the close. 
  • Stopped out of HRS (small loss) and MENT (slightly above breakeven). 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.