Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls

Current Short Positions (stop-losses in parentheses): BKU (23.65), VIP (10.68), OZM (10.31), SDS (22.90)

BIAS: 30% Short

Economic Reports Due Out (Times are EST): Wholesale Trade (10am)

My Observations and What to Expect:

  • Futures are slightly negative heading into the open. 
  • Asian markets were down about 0.3%, while European markets are down about 0.7%.
  • Bulls were unable to hold the follow through in the early morning yesterday, and instead sold off into the close.
  • Yesterday’s selling also pushed the S&P back below the 10-day moving average and shows the potential for a resumption of further selling, just like we saw after 9/1 when the market couldn’t push any higher. 
  • Look for short-term support today (bottom channel of the bearish flag) to occur at 1142. If we break that level, we are then officially starting the next wave down. 
  • Ultimate goal for the bulls today must be to break through yesterday’s highs at 1204 and close above them. 
  • Morning star formation recently formed/completed on 9/7 still in play (bullish).
  • The underside of the rising trend-line that started back on July ’09 has been creating some resistance for the market over the past few weeks. Today it is at 1220.
  • S&P is trading in a well defined channel off of the 8/9 lows as well. However, it leads me to believe it is more of a bearish flag pattern than anything else – a break below 1140 would confirm the pattern and likely start the next leg down.
  • The rally could take us back up as high as 1240’s before seeing the downward trend resume itself.
  • My Conclusion: I believe the market is facing headwinds going into today, and that we may very sell see a “sell-the-news” even off of th Obama speech from last night. 

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Here Are The Actions I’m Taking:

  • I’ll be looking to play both the long and short side through out the day.
  • Shorted OZM yesterday at $10.21
  • Covered my VIP trade yesterday at a 0.43% loss. 
  • Day-traded IMAX (x2) and MELI yesterday – both unsuccessful and both for less than 1% losses. 
  • Bought and sold sold TZA yesterday for a 3% gain. 
  • Will continue looking for some short-term option plays.Problem is that the premiums on options right now are extremely elevated. 
  • 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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