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Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls

Current Short Positions (stop-losses in parentheses): BKU (23.65), VIP (10.68)

BIAS: 20% Short

Economic Reports Due Out (Times are EST): International Trade (8:30am), Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Quarterly Services Survey (10am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am), Bernanke Speaks (1pm), Consumer Credit (3pm), Jobs Speech (7pm)

My Observations and What to Expect:

  • Futures are moderately lower heading into the open. 
  • Asian traded in a mixed fashion, Europe is about 1% lower, on average. 
  • Morning star formation formed over the last three days (bullish). 
  • The underside of the rising trend-line that started back on July ’09 has been creating some resistance for the market over the past few weeks. Today it is at 1219. 
  • S&P is trading in a well defined channel off of the 8/9 lows as well. However, it leads me to believe it is more of a bearish flag pattern than anything else – a break below 1140 would confirm the pattern and likely start the next leg down. 
  • Price action from yesterday saw the bulls reclaim the 10 and 20-day MA’s. 
  • The rally could take us back up as high as 1240’s before seeing the downward trend resume itself.
  • Notice the first bullish MA crossover in months occurring between the 10 and 20 MA’s.
  • My Conclusion: I think the rally we saw yesterday was in conjunction with a ‘buy the Obama jobs speech’ and either today or tomorrow, we’ll likely see a resumption of the sell-off. 

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Here Are The Actions I’m Taking:

  • I’ll be looking to play both the long and short side through out the day. 
  • Shorted BKU at $23.00 yesterday. 
  • Shorted VIP at $10.48 yesterday.
  • Day-traded WLT yesterday for a 1.8% loss, AES for a 2% gain, and CEDC for a 4.3% gain. 
  • Won’t be tempted to hold large positions overnight in the equities.
  • Will be looking for some short-term option plays.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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