Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.54), ITW (47.40), QQQQ (49.25), TIE (19.73), BEAV (31.75), PAG (13.62), DTV (41.09), ZION (21.59), ACI (25.54)
Current Short Positions (stop-losses in parentheses): None
BIAS: 82% Long
Economic Reports Due Out (Times are EST): Bernanke (8:15am), Consumer Price Index (8:30am), Retail Sales (8:30am), Empire State Manufacturing Survey (8:30am), Consumer Sentiment (9:55am), Business Inventories (10am), Treasury Budget (2pm)
My Observations and What to Expect:
- Futures are mixed, with Nasdaq showing the most strength.
- Google earnings is providing a huge boost to the Nasdaq – stock is up over 8% in after hours trading.
- Volume over the past couple of days has been impressive.
- S&P bounced nicely off of the current August-lows trend line.
- Bernanke speaking prior to the market open – could give a boost. I don’t believe he’ll try to sabotage the markets – he usually tries to avoid that at all costs. Instead the emphasis will be QE2.
- Nice pullback yesterday to the 10-day moving average, which has consistently represented support for the markets of late.
- Lots of reports due out this morning – CPI and Consumer Sentiment will be in focus.
- Bears should aim to break through 1162 and then the 1156 level on the S&P.
- Dip buying crept back in the last hour of trading yesterday.
Actions I Will Be Taking:
- Stopped out of ZION yesterday at the predefined stop-loss. .
- Added ACI to the portfolio near the close of trading.
- Not hedged at all heading into the open.
- Stop-loss changes made in BEAV and PAG.
- Could add an additional position to the portfolio under the right circumstances.
- I’ve become much tighter/aggressive with the stop-losses, and more willing to take profits once there is any hesitation in the stock itself.
