Current Long Positions (stop losses in parentheses): TICC ($10.21), NFLX ($165), MCD ($76.92), QID ($11.92)
Current Short Positions (stop losses in parentheses): SBUX ($31.37)
Bias: 4% Short (-20% short considering the leverage in QID)
Economic Reports Due Out (times are EST): None
My Observations and What to Expect
* Futures are showing some weakness.
* Asian markets were up about 1%, while European markets are trading with a slight negative bias.
* Today sets up as an excellent pullback opportunity. Wait for the market to give back some gains here before jumping into anything on the long side.
* With the upside break through of the 200-week moving average, history suggests that this leads to a major rally in the markets.
* The next level of resistance for the bulls is 1,275 on the S&P 500.
* Initial support for the S&P on a pullback lies at the April highs, which is 1,219 or 6 points below where it is currently trading.
* There is absolutely no reason to be short except for the very near term where the market needs a small pullback before advancing any further. Any significant position building to the short side is a reckless use of portfolio capital.
* There are no scheduled news releases due out today that could impact the market.
* Wait for some weakness in this market before adding new long positions. Do not try to chase after this market.
* For the bears, look for a gap open that is below Friday’s lows with further selling thereafter, which would be ideal, and at the least, some selling today that begins to erase Thursday’s gains.
Actions I Will be Taking
* Added one new short position to the portfolio on Friday: Starbucks Corporation (NASDAQ: SBUX), which looks to have made an exhaustion gap-up on Friday.
* Will look to sell the ProShares UltraShort QQQ ETF (NYSE: QID) and cover SBUX today on market weakness.
* Will add one or two new long positions to the portfolio on any decent amount of market weakness.
* Follow me in the SharePlanner Chat-Room today for all my live trades, including my day trades.
The SharePlanner Swing-Trading System is a proven trading strategy that has outpaced all the major indices with an 8-year return of over 1,010%. This year alone it is up 29%, with 64% of the stock picks being winners. It’s an easy trading system that requires very little effort after you buy the stock and great for those who can’t watch the market all the time! Find out more by visiting SharePlanner.com.
