Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (41.84), DIS (35.75), GS (160.35), SNDK (36.59), AMZN (161.08)
Current Short Positions (stop-losses in parentheses): None
BIAS: 42% Long
Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am), ISM Manufacturing Index (10am), Construction Spending (10am)
My Observations and What to Expect:
- Futures are up moderately, but were up as much as 1% in overnight trading.
- Asian markets are up heavily, but European markets are flat..
- Markets continue to trade inversely to the strength/weakness of the U.S. Dollar.
- Friday represented another tight and consolidated range. Market is poised to gap above Friday’s highs, which helps out quite a lot in breaking this market out of the 2-week market range.
- Buyers could become inspired if the S&P can close above 1189 initially, and ideally 1196.
- 4 straight days the market has tried to close below the 10-day moving average. Every time the moving average has been breached the market has rallied back.
- 6 out of the last 7 trading sessions have ended in a doji candle – the perfect definition of a gridlocked market.
- Election mid-terms have seen bullish returns the last three times, and overall, mid-term election week, historically, tends to be very bullish.
- The bears should focus their efforts in just closing below the 10-day moving average today. After that, the focus should be on pushing below Wednesday’s lows at 1171.
Actions I Will Be Taking:
- Stopped out of DIS (0.5%) and GS (1%) for small gains
- Added AMZN to the portfolio Friday.
- More consolidation would likely keep me from adding any additional positions. A sell-off of any significance will send me into profit protection mode. A market breakout is probably the only scenario in which I would add a new position to the portfolio.
- Tightened my stop-loss in GLD and SSO.
- Not hedged heading into the open.
- Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.
