Current Long Positions (stop-losses in parentheses): SPY August 136 Calls, SD (10.72), HNSN (4.80), GMO (4.39), LIOX (3.10), OPWV (2.38), YSI (10.75)

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

BIAS: 26% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Existing Home Sales (10am), EIA Petroleum Status (10:30am)

My Observations and What to Expect:

  • Futures are much stronger this mornings.
  • Asia was flat, and Europe is trading slightly higher. 
  • After a major move on Tuesday, we saw the market consolidate yesterday near its highs, finishing the day ever-so-slightly lower. 
  • Volume was very light. 
  • S&P managed to hold on to the 10-day moving average yesterday
  • Look for a test of recent highs at 1356 in the coming days/weeks. 
  • To stay relevant, the bears need to avoid a break of 1356, and aim for a push below 1295 on the S&P, in order to put a new downward trend in place. 
  • Strong positive correlation of late between the dollar and gold – which is a relationship we are not used to seeing.
  • Indices and a lot of stock charts are showing an inverse head and shoulders pattern forming on the daily charts.
  • My Conclusion: I’m bullish here, and will look for an eventual challenge of recovery highs. 

Here Are The Actions I Will Be Taking:

  • Sold HNSN yesterday at 5.12 for a 6.7% gain. Sold OWW at $3.15 for a 3.7% loss, sold MHGC at $7.58 for a flat trade, sold IO at $10.12 for a 1.7% loss. 
  • Bought OPWV at $2.50, GMO at $4.60, YSI at $11.00 and LIOX at $3.23 – held overnight. 
  • Continue to hold SPY August 136 Calls, would ideally like to hold them through the end of the week. Will take it day-by-day though.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).