Current Long Positions (stop-losses in parentheses): ECA (34.45)

Current Short Positions (stop-losses in parentheses): None

BIAS: 10% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect: ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), ISM Non-Manufacturing Index (10am), FOMC Minutes (2pm)

  • Futures are slightly lower heading into the open.
  • Asia saw some wild returns ranging from -1% up to 1.5%, while Europe traded about 0.5% lower.
  • S&P is really struggling with the 1332 level in the market. Though it seems fine with breaking it on an intraday basis, it doesn’t seem able to hold it into the close.
  • Volume continues to come in as less than mediocre.
  • Caution is warranted with the struggle at 1332 and the overextended market to the upside. Could result in, at the very least, some consolidation short-term.
  • Looking at the 30-minute chart on the S&P suggests that we are seeing consolidation after breaking the upward trendline off of the 3/16 lows, yesterday.
  • We’ve see the market give up a lot of its early morning gains lately, which makes me believe that the market is having a hard time attracting buyers at current price levels.
  • I need to see some follow through on yesterday, and a close above 1332 before we technically break the downtrend the market has been in since 2/18/11.
  • After 1332 is broken the next level of resistance is 1344 on the S&P.
  • My conclusion: While there is no reason to believe the market won’t continue to march higher going forward, I believe we could see a few days of profit taking on the horizon.,

Here Are The Actions I Will Be Taking:

  • Sold Home Depot (HD) yesterday for a 1.3% loss, Sold SVM for a 0.8% gain.
  • Bought ECA at $34.90 yesterday on a nice bull-flag breakout possibility.
  • Will hold off buying anything in the first 30 minutes today. 
  • Shorting intraday isn’t out of the realm of possibility should early morning weakness continue, and will look to add some new long-swing trades to the portfolio should the market recover off of its lows.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.