Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.26), CVX (81.94), ITW (47.17), SSO (40.07), QQQQ (48.90), URS (37.82), TIE (19.52), BEAV (30.90), PAG (12.62), DTV (41.09)
Current Short Positions (stop-losses in parentheses): None
BIAS: 95% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), FOMC Minutes (2pm)
My Observations and What to Expect:
- Futures are trading moderately lower, but has rallied off of its overnight lows.
- Asian markets lower (Nikkei down 2%), European markets down as well.
- Overnight futures have been very volatile, marked by wild swings.
- China is reportedly forcing banks to hold more reserves and slow lending – which is causing the unexpected selling in the markets.
- Not a major hurdle for the market to overcome, but will weight heavily on the market today.
- FOMC Minutes could play a major role at 2pm today.
- The trendline from 8/31 onward remains intact.
- Best case scenario for the bears today is to push the market back below 1150. They can’t afford to allow the bulls to rally off of intraday lows – will continue to only embolden the dip-buyers.
- Best case scenario for the bulls today is to recover from the overnight selling, and finish in or near positive territory.
Actions I Will Be Taking:
- Closed out last 1/2 of ELY yesterday for a 7% gain.
- URS remains on the chopping block today. No recovery today in this stock, will result in it getting axed.
- Don’t plan on adding new positions to the portfolio.
- All stop-losses remain the same from yesterday.
- I am not at all hedged in my portfolio right now.
- Added DTV to the portfolio yesterday at $42.14.
