Current Long Positions (stop losses in parentheses): TICC ($10.28), HRS ($45.34), CEL ($34.17), RAH ($60.75)
Current Short Positions (stop losses in parentheses): ADBE ($30.10), DTV ($43.30), EQR ($51.15), VPRT ($42.37)
Bias: 2% short
Economic Reports Due Out (times are EST): ICSC-Goldman Store Sales (7:45 a.m.), GDP (8:30 a.m.), Corporate Profits (8:30 a.m.), Redbook (8:55 a.m.), Existing Home Sales (10 a.m.), FOMC Minutes (2 p.m.)
My Observations and What to Expect
* Futures are down in excess of 1% heading into the open.
* Asian markets down more than 2%, and European markets down over 1%.
* Today is shaping up to be another rejection at S&P 500 1,200 after yesterday’s late-day rally up near the price level.
* The bulls managed to bounce off of the existing trendline (albeit a flatter one), and once again closed back below the 20-day moving average.
* Bullish flag forming on the charts, which could be indicative of a potential move higher in the near future.
* The conflict between North and South Korea is adding to the losses we are seeing this morning.
* This is what it boils down to: A break below 1,189 on the S&P will be a strong indication we are putting in a lower high, which isn’t a total game changer. However, a break of 1,173 (also the same price of the 50-day moving average) over the coming days is, as it would establish a new downtrend with a lower low in place.
* For the bulls, the 1,200 price level and a breakout of this flag pattern will change the sentiment of this market.
* Expect lower volume as the week progresses due to the Thanksgiving holiday.
Actions I Will Be Taking
* Will look to add two new positions to the portfolio today (a long and short position).
* Closed out positions in TFS Financial Corporation (NYSE: TFSL) and BioMarin Pharmaceutical Inc. (NASDAQ: BMRN).
* VistaPrint NV (NASDAQ: VPRT) (short) and Ralcorp Holdings, Inc. (NYSE: RAH) (long) are the latest additions to the portfolio.
* Tightened my stop loss in Cellcom Israel Ltd. (NYSE: CEL) to breakeven at $34.17.
* Follow me in the SharePlanner Chat-Room today for all my live trades, including my day trades.
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