Current Long Positions (stop-losses in parentheses):
TICC (9.04), BRKR (12.95), CVX (76.89), DAL (11.05), ELY (6.39), ITW (44.45), SSO (38.03), QQQQ (48.06)
Current Short Positions (stop-losses in parentheses): LMT (76.35)
BIAS: 73% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am),
My Observations and What to Expect:
- Futures are slightly above break-even.
- Volatility could increase as we approach the end-of-quarter.
- Bulls must push through 1150 on the S&P, which is currently acting as resistance, followed by 1173.
- Asian and European markets are down.
- I’ll be watching the Consumer Confidence report and the market’s response to it.
- Bulls now have reclaimed the neckline of the confirmed inverse head and shoulders pattern.
- Bears should aim 1) To push the markets back below 1130, and 2) Put in a lower-low, by breaking below 1122.
- In the very near-term, the markets have managed to work off their overbought conditions. In the intermediate to long-term picture, we are still overbought.
- Thursday could set up to be a wild day with GDP and Jobless Claims due.
- Last week before quarter-end.
Actions I Will Be Taking:
- I’ll look to add no more than 1-2 positions to the portfolio today.
- Bought QQQQ @ 49.55
- I will not hesitate to add a hedge position if this market wants to sell-off today.
- Any gap up/down this morning should represent a good fading opportunity.