Current Long Positions: Netflix (NFLX) Nov 160 Calls

Current Short Positions: None

BIAS: 100% Cash

Economic Reports Due Out (Times are EST): 

My Observations and What to Expect: Personal Income and Outlays (8:30am), Chicago PMI (9:45am), Consumer Sentiment (9:55am)

  • Futures are lower by about 1% heading into the open. 
  • Asia saw losses range from flat to -2.3%. Europe is seeing losses of roughly -1.9% today. 
  • Bear Flag from the past two months is in full effect and force, suggesting we see a move below 1100 eventually. 
  • The market continues to act as a dangerous place for the passive trader. Intraday day whip-saws creates gains and erases them very quickly. Take the gains when you can. 
  • Three days in a row, the S&P has tested the 10 and 20-day moving averages and failed each time. The two converged moving averages, are acting as heaving resistance. 
  • For the bears, the goal should be to push the market and close below 1136 today, setting up for a critical test of the 1120 and 1101 levels next week. 
  • Support for gold is coming up on a critical long-term trend line. On GLD this is at $154.
  • Make sure that whatever you do, that you protect the gains that you have, and be ready for sudden and quick reversals in this market.
  • The bears have yet to successfully trade AND close below 1120 on the S&P. There is continued buying support at these levels. Should this level eventually break, watch 1114, and then 1101 for additional support.
  • My Conclusion: We’re heading lower, or at least that is what the charts are forecasting. Moves higher, both intraday and daily, should be used as selling/shorting opportunities. 

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Here Are The Actions I’m Taking:

  • Quiet day of trading for me yesterday. Closed out the NFLX calls while the stock was trading at $122. 
  • Will watch market action for the first 30min to 1 hour of trading before jumping into anything else.
  • Friday’s have been difficult for trading lately, not a lot of intraday price movements. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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