Current Long Positions (stop-losses in parentheses):
Current Short Positions (stop-losses in parentheses): None
BIAS: 3% Long
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Existing Home Sales (10am), Leading Indicators (10am), EIA Natural Gas Report (10:30am),
My Observations and What to Expect:
- Futures are moderately lower.
- It is very possible that futures will open up below 1130 this morning, but I wouldn’t look at it as weakness from the bulls, but more as a pullback at this point.
- I would be more concerned if they starting dropping below 1100-1090.
- First time since August we have seen two days in a row in the negative.
- Jobless claims that misses, could result in a very nice decline and offer an opportunity to put some capital to work.
- A healthy sell-off today, would go a long ways in working off these overbought conditions.
- One thing I would keep an eye on has been the volume on the down-days during the past two days of selling – they have been higher than all other days except for 9/2.
Actions I Will Be Taking:
- Could add 1-2 new long position to the portfolio today if we can get a sell-off of respectable portions (nice wording, eh?)
- 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.
- Upon adding a few long positions, will not hesitate to hedge those positions with a short position (ETF – SPY), if the market wants to continue the selling pressures.
- Be careful with fading the gap this morning, with the jobs report coming out later, you could have a pretty substantial sell-off to start things off, and one that might not get filled.
- Added a few more stocks to the chart pattern page for you to look at.
- I could see myself having 3-4 new long positions by week’s end, if we end up giving back all of Monday’s gains in the days ahead.
- Raised the stop-loss in TICC to 9.04.