Current Long Positions (stop-losses in parentheses): TICC (8.51)
Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (45.95), FCN (35.01), URBN (32.73), OMI (27.76), ADBE (29.78), DDS (22.16), BIDU (83.39)
BIAS: 52% Short
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Chicago PMI (9:45am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), FOMC Minutes (2pm), (Farm Prices (3pm)
My Observations and What to Expect:
- Futures down moderately.
- A lot of reports due out today – none more important than Consumer Confidence.
- FOMC Minutes could add additional jolt to the markets, depending on its language.
- Bears need to close below 1039. Twice last week the market have bounced at these levels.
- Bulls need to close above 1065 to inspire some more buying.
- Nice Downtrend from 8/9 with short-term lower-highs on 8/18 and 8/27.
- Bears need to see more volume pouring in on its down-days to get the ultimate sell-off it seeks.
Actions I Will Be Taking:
- Unlikely to be adding any additional short positions to the portfolio today.
- New stop-losses posted above in DDS and DGX.
- Don’t expect to hedge my portfolio today but will if the bulls show similar buying behavior to Friday’s rally.
- Will focus more on scalping today, particularly if we trade sideways.
- Closed out URBN @ 30.74 for a 9.2% gain.
- Shorted BIDU yesterday at $78.89
