Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (41.84), SNDK (36.59), AMZN (161.08), BAC (11.34)
Current Short Positions (stop-losses in parentheses): None
BIAS: 52% Long
Economic Reports Due Out (Times are EST): FOMC Meeting Begins, ICSC Goldman Store Sales (7:45am), Redbook (8:55am)
My Observations and What to Expect:
- Futures are up moderately, and have steadily improved throughout overnight trading.
- Asian markets are slightly up, while Europe is seeing some respectable gains on the day.
- The inability of the market to break through the 200-week moving average, has halted this market in its tracks the last 2-weeks. A break through would nearly guarantee we go much higher.
- Bulls did breach the 200-week moving average yesterday on an intra-day basis, which isn’t something the bulls were able to do the previous two times.
- A test of the 10/25 highs failed as we touched them and then proceeded to sell-off thereafter.
- A very large doji candle yesterday is the 7th in the last 8 market sessions.
- Once again, the bulls managed to keep the markets above the 10-day moving average at the close despite trading below it on an intra-day basis.
- A break and close above 1196 would ensure us that we have broken out of consolidation.
- 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:
- No positions were closed yesterday.
- Added BAC to the portfolio yesterday but with an extremely tight stop-loss.
- A breakout above 1196, would likely be reason for me to become more aggressive with my portfolio.
- Not hedged going into the open.
- Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.
