Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (12.95), CVX (76.89), DAL (11.05), ELY (6.39), ITW (44.45), SSO (38.03), QQQQ (48.06), FRG (6.78)
Current Short Positions (stop-losses in parentheses): LMT (76.35)
BIAS: 76% Long
Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am), Consumer Sentiment (9:55am), ISM Manufacturing Index (10am), Construction Spending (10am)
My Observations and What to Expect:
- Futures are up moderately.
- Chinese Manufacturing data is bolstering markets.
- Both Asian and European markets are up.
- 6 out of the last 10 Octobers have ended with positive gains.
- 4 out of the last 10 opening October sessions have ended with positive gains.
- Today represents a great opportunity for the bulls to close above 1150 on the S&P
- On the weekly charts, a close above 1156 would make it a near certainty that we test the April highs.
- Still wedged up against the upper line of the rising channel. For October to be a success, will need to breakout and above the upper-line.
- Bears need to push this market below 1131 for starters and ultimately 1122 in order to put in a lower-low.
- Price action very similar to what we saw from 9/13 through 9/17.
Actions I Will Be Taking:
- Will hold off from adding any new positions to the portfolio until we see confirmation that this market is willing to move higher.
- No changes to any of my stop-losses.
- Becoming a bit weary of intraday hedge positions for covering myself if the market goes lower due to the willingness of the bulls to continue buying dips. Yesterday was a perfect example of how fast the dip buying can infiltrate the market when it is declining.
- I would hold off of fading a morning gap up this morning.
