Good morning to you all, futures have an unusual negative bias this morning heading into the open. Ironically, today is the one-year anniversary of the market bottom that eventually led to one of the sharpest rebounds in market history. It would only be fitting if the market completely broke down today as a result.

Also worth mentioning is that I picked up two new long positions, (BKS) and (UGI), and remain less than 20% in equities right now. So I am sitting on a lot cash, and likely will continue in doing so if we don’t get some kind of pullback here in the near future. I’ll be raising my stop-loss in UGI to 24.14.

On the economic front we should have a relatively quiet day with only ICSC-Goldman Store Sales due out at 7:45am ET followed by the Redbook at 8:55am. Chicago Federal Reserve Bank President Charles Evans will speaking at a conference up in Virginia as well.

It will be interesting to see how quickly the bulls jump on this market today if we do indeed continue to trade in the red and gap down at the open.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): First American Corp (FAF) – This stock has been in a trading channel since September of last year, and has nicely pulled back to its 50-moving average, where it currently rests on support. Place your stop-loss at 31.44, but also have your target price set at 33.56 – an excellent risk-reward setup.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Spreadtrum Communications (SPRD) – The stock since bottoming a year ago, has gone up over 1,000% which, in and of itself, is quite impressive. SPRD has recently retraced back to the 50-day moving average, where it is looking to rebound. Place your stop at 6.02.

Potential Swing Trade (Short): Myriad Genetics (MYGN) – In a down trend for over a year now, this stock can’t do anything right. Each rally has been shorted, and this one here is no different. Should the downtrend continue, this stock should easily reach the $19-range if not less. Recommend a stop-loss of 24.05.

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