Current Long Positions (stop-losses in parentheses): TICC (8.94)

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

BIAS: 3% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am), FOMC Statement (2:15am)

My Observations and What to Expect:

  • Futures are at break-even with a slight negative tilt. 
  • 1130 level on the S&P was broken yesterday, which confirmed the inverse head and shoulders pattern. 
  • Very little resistance keeping the S&P from reaching 1219 (April’s highs). 
  • There is some minor resistance (and very minor) at 1173
  • As I’ve been saying, the market is overbought in every sense of the word. 
  • The bear argument is pretty much dead for the time being unless yesterday’s rally was just a head-fake, but the odds of that is pretty low, in my opinion. 
  • FOMC Statement today will add a lot of volatility, especially in regards to expectations regarding QE2. I’ll be posting the statement here for you to see, almost immediately. 

Actions I Will Be Taking:

  • Will not be adding any new short positions to the portfolio for the foreseeable future, unless there’s some kind of game-changer that takes place. 
  • Will be looking to add some new long positions on a market pullback. 
  • Gap this morning could be faded. 
  • Will be providing in the days ahead some long setups to be keeping an eye on. 
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