Current Long Positions (stop losses in parentheses): TICC ($10.28), HRS ($45.34), RAH ($60.75), MENT ($11.08), EQY ($16.75), PH ($78.95)
Current Short Positions (stop losses in parentheses): ADBE ($28.55), DTV ($42.55), EQR ($51.15), VPRT ($42.37), TIE ($17.84), ITT ($48.01) GLAD ($11.54)
Economic Reports Due Out (times are EST): None
My Observations and What to Expect
* Futures are mixed and well off their overnight highs, which saw the S&P 500 up close to 1% at one point.
* Asian markets closed with a decent amount of gains, while European markets are showing significant losses on the day.
* Friday’s market action put in a bearish Harami candle pattern.
* Despite the wild price swings of late, the market continues to consolidate within a narrowing range.
* S&P 500 remains within the October consolidation range.
* Friday’s sell-off represents another failed attempt by the bulls to rally the market beyond 1,200.
* The 50-day moving average is very much in play now for the bears.
* Even more important than the 50-day moving average is the 1,173 level on the S&P, as a break of it would signal a lower low in the markets, thereby killing the upward trendline coming off the August lows.
* The bulls must continue to focus its efforts on breaking the 1,200 point price level.
Actions I Will Be Taking
* At some point today, I will add two new positions to the portfolio (one long, one short).
* Should see some stop losses get tightened.
* Follow me in the SharePlanner Chat-Room today for all my live trades, including my day trades.
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