Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.45), CVX (82.45), ITW (47.40), SSO (40.07), QQQQ (48.99), URS (37.82), TIE (19.52), BEAV (30.90), PAG (12.86), DTV (41.09)
Current Short Positions (stop-losses in parentheses): None
BIAS: 91% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Import and Export Prices (8:30am), Treasury Budget (2pm)
My Observations and What to Expect:
- Futures are trading moderately higher today.
- Another encouraging intraday recovery for the bulls yesterday, which continues to provide further legitimacy to this market rally.
- Both Asian and European markets are up strong.
- Intel (INTC) and CSX Corp (CSX) reported solid earnings after the bell that was well-received by the street. Should help provide support to the markets today.
- On an intraday basis, the market continues to bounce off of 1156 level, causing a lot of headaches for bears.
- The potential exists for a gap above the last remaining resistance level on the S&P before challenging the April highs. Such a gap could be enough of a catalyst to see a multi-day rally.
- Fed news of late, tends to take a 2-3 days for the market to digest.
- No major/significant economic news due out today.
- JPMorgan (JPM), Charles Schwab (SCHW) scheduled to report earnings before the market open.
- Bears should aim to break through 1156 level on the S&P and then 1150 thereafter.
Actions I Will Be Taking:
- Stopped out of URS yesterday for a small loss.
- Considering taking profits in CVX after the company announced lower guidance for their earnings report due on 10/29. At the least, I’ll be tightening the stop-loss.
- Don’t plan on adding new positions to the portfolio today.
- All stop-losses remain the same from yesterday.
- I am not at all hedged in my portfolio right now.
