Current Long Positions (stop-losses in parentheses): CHK (33.55), EWJ (9.24)
Current Short Positions (stop-losses in parentheses): None
BIAS: 15% Long
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Jobless Claims (8:30am), Industrial Production (9:15am), Leading Indicators (10am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
- Futures are up strong – in excess of 1%.
- Japan was down 1.4%, while the rest of Asia too was down more than 1% in trading. Europe is trading much higher seeing gains range from 1.5% to 2.5%.
- Selling continues to rapidly increase, with the declines that we are seeing, as the S&P pealed off another 25 points, and as of yesterday was trading in the negative on the year.
- Today’s large gap up is very legit and likely to hold. It will force a lot of bears to suddenly cover their shorts – but I don’t think this bounce is going to last – instead I think if played right, offers a great opportunity to eventually start shorting this market again.
- No need though to rush adding short positions right away today – could see some follow through too, and see the S&P push as high as 1300 again before finally selling off again.
- There is a plenty of “open space” for the market to run today – selling of late is extreme, market is oversold, and there is no overhead price barriers until the 1300 market on the S&P.
- My conclusion: This rally, while I believe it will trend strongly today and even possibly into tomorrow, will only provide the bears ultimately with better shoring opportunities.
Here Are The Actions I Will Be Taking:
- Added EWJ at $9.69 at the close.
- Took profits in FFIV of 3%, GOOG of almost 1%. Sold AAPL for -1.5% loss.
- Will look to scale out of my two long positions today.
- Additional trades will be intraday trades. Not trusting this markets ability to rally for multiple days.
- Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.
