Current Long Positions (stop-losses in parentheses): TICC (9.62), DTV (42.99), ESRX (46.42), AAPL (307.87), GLD (121.25), DDS (26.07)

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

BIAS: 45% Long

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

My Observations and What to Expect:

  • Futures are showing considerable strength.
  • Asian and European markets are seeing small losses. 
  • Doji candle from yesterday, on the S&P, is very disturbing, and makes me believe that a pullback could definitely be in the cards right here. 
  • Yesterday’s price action was very similar to what we saw last Thursday, where the bulls simply  cannot hold on to their gains. 
  • One thing that could be causing some problems is the underside of the 30 point range the market was stuck in back in April of this year. We are essentially right underneath it. 
  • The two objectives of the bears today are 1) Break the trendline that the market is trading off of the August lows on 2) push the market below 10/19 lows. The first is achievable, while the second is a best case scenario. 

Actions I Will Be Taking:

  • Closed out my position in ESRX for a 2% gain. 
  • Added DDS to the portfolio but is a very small position. 
  • Tightened the stop-loss on AAPL and DTV.
  • Unlikely to add any new swing-trades to the portfolio today.  
  • Not hedged heading into the open.
  • Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.