Current Long Positions (stop-losses in parentheses): AAPL (334.75)

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

BIAS: 10% Long

Economic Reports Due Out (Times are EST):Jobless Claims (8:30am), EIA natural Gas Report (10:30am), Consumer Credit (3pm)

My Observations and What to Expect:

  • Futures are moderately higher going into the open.
  • Asian and European markets were mixed. 
  • While the S&P managed to close above the 1332 finally, thereby ending the, albeit short in tenure, market downtrend, with a new higher-high.
  • For four straight days we have been trading within tight consolidation forming doji candles on 3 of them. 
  • Watch for a close below 1328, to determine whether this market may see additional selling in the short-term.
  • A break of 1328, could lead to, at the very least, a mild pullback. 
  • The S&P continues to find strength with the 10-day moving average – trading above it now for 12 straight days. 
  • Volume has seen a slight increase over the last two days. 
  • Overbought conditions in the short-term are being alleviated to a degree. 
  • Weekly charts show the market looking very healthy. 
  • Next level of resistance is 1344 on the S&P.
  • My conclusion: Recent consolidation might be the profit taking we’re looking for. The odds are very favorable we see a rip higher in the short-term. 

Here Are The Actions I Will Be Taking:

 

 

  • Sold AAPL yesterday for a 1.4% gain, ERTS for a 1.05% gain, SU for a 0.8% loss, and ECA for a 1.4% loss. 
  • Will look to book some gains in my existing positions today on market strength, and also look for other trading opportunities to the long side.
  • Added AAPL again to the portfolio at $338.36.
  • Will hold off buying anything in the first 30 minutes today.
  • Watching TRN, RA, IBM for potential breakouts today. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.