Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.54), CVX (82.45), ITW (47.40), SSO (40.07), QQQQ (49.25), TIE (19.73), BEAV (30.90), PAG (13.28), DTV (41.09), ZION (21.59), SDS (Hedge)
Current Short Positions (stop-losses in parentheses): None
BIAS: 26% Long (80% w/o hedge position)
Economic Reports Due Out (Times are EST): International Trade (8:30am), Producer Price Index (8:30am), Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am)
My Observations and What to Expect:
- Futures are slightly higher today.
- Yesterday the bulls managed to push through the last resistance barrier (1174) on the S&P before clearing the way to challenge the April highs.
- Volume was outstanding yesterday – highest since July.
- Asian markets up strong, European markets are mixed.
- QE2 remains in the spotlight right now with traders.
- Could foresee a pullback to the trend line in the cards for the near term – down around 1162-1165 range. Near the 20-day moving average.
- Jobless Claims and PPI report will heavily influence market action.
- Bears should aim to break through 1162 and then the 1156 level on the S&P.
- Afternoon selling was a surprising change.
Actions I Will Be Taking:
- Closed out two positions yesterday: CVX and SSO for solid gains.
- Added ZION to the portfolio, but could close it out today if it does not behave a little bit better. Breakout failed to hold.
- Would like to see a pullback to add some new positions to the portfolio.
- Stop-loss changes made in QQQQ, BRKR, and PAG. Potential tightening today could occur in BEAV (31.75) and DTV (41.54).
- Will likely hold my hedge position throughout the morning, if we can break the 1 hour intraday highs, I’ll get rid of it.
