Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): SPY (131.35)
BIAS: 45% Short
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), FHFA House Price Index (10am), Bernanke Speaks (12pm)
My Observations and What to Expect:
- Futures flat, with a slight positive bias.
- Japan up another whopping +4%, while the rest of Asia was slightly higher. Europe is trading flat on the day.
- The 1303 level on the S&P will continue to be an important resistance level today where the 20 & 50 day moving average resides, as well as previous price resistance.
- Despite yesterday’s strong price surge, the volume was very low and below average.
- A break of the descending trendline would occur at 1313 on the S&P.
- New downtrend is in place, and as a result, rallies should be viewed skeptically, and with the idea that they are opportunities to reload on short positions.
- Trades, whether long or short, should be held for a much shorter period of time. Market volatility can quickly erase gains.
- My conclusion: If this market is going to continue its bearish ways, it will need to sell off here real soon.
Here Are The Actions I Will Be Taking:
- Added more to my SPY short position yesterday at 129.81
- Should the market surge higher, today, I will add once more to my SPY position.
- Any long positions I take will be on an intraday-basis.
- Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.
