Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): SPY (131.35), ALXN (95.61), VAR (66.75)
BIAS: 72% Short
Economic Reports Due Out (Times are EST): GDP (8:30am), Corporate Profits (8:30am), Consumer Sentiment (9:55am)
My Observations and What to Expect:
- Futures are moderately higher heading into the open.
- Asian markets saw average returns of about 1%, while Europe traded flat.
- S&P closed above the 20 and 50-day moving averages yesterday, but volume was once again flat and lacking.
- Price on the S&P also managed to close right on the descending trend-line that started off of the 2/18 highs.
- As a result, today is a major inflection point for the markets. Sell-off would indicate that we are likely to see a resumption of the downward trend, while a strong puch through the descending trendline would indicate a breakout for the market.
- Bulls have a text book inverted head and shoulders pattern working in their favor on the hourly intraday charts.
- Remember we are in a confirmed downtrend. You cannot be as trusting of market dips as being a ‘buying opportunity’ – instead, as traders you have to reverse course and sell-the-rips.
- My conclusion: Today is pivotal – a close above the descending trend-line would all but kill the bear arguments for further an immediate downside in this market.
Here Are The Actions I Will Be Taking:
- No new positions added yesterday.
- I will be likely forced to cover my short position in SPY today should this market not retreat.
- Continued market strength today, will be reason for me to shift my bias more towards the long side.
- Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.
