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): MBA Purchase Applications (7am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)
My Observations and What to Expect:
- Futures are moderately lower.
- Today will be used for the market to further digest the Fed’s comments in yesterday’s FOMC statement.
- Yesterday snapped a 9-day winning streak for the Nasdaq.
- I’d like to see a pullback to at least 1100-1115 on the S&P.
- Finally starting to work off some of those overbought conditions.
- Yesterday’s volume was much higher than usual, but mainly in part due to the Fed announcement.
- Monday’s 1130 breakthrough, pretty much ruined the bear’s chances of a breakdown before the end of the year.
- The bears need to target a break of 1113, it’s not much but it would be a start. A break of 1100 would have the bulls nervous.
Actions I Will Be Taking:
- Could add a new long position to the portfolio if we get a nice sell-off today (10-20 points).
- 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 continue looking to add some new long positions on a market pullback.
- Unless the market breaks down between now and the open (+10 points on the S&P Futures), this gap is fade worthy.
- Will be providing in the days ahead some long setups to be keeping an eye on.
- 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.