Current Short Positions (stop losses in parentheses): TICC ($10.28), MCD ($77.74), BIDU ($104.74), GS ($160.40), HRS ($44.99), HTZ ($11.78), KR ($22.36)
Current Short Positions (stop-losses in parentheses): TFSL ($8.69)
Bias: 57% Long
Economic Reports Due Out (times are EST): ICSC-Goldman Store Sales (7:45 a.m.), Producer Price Index (8:30 a.m.), Redbook (8:55 a.m.), Treasury International Capital (9 a.m.), Industrial Production (9:15 a.m.), Housing Market Index (10 a.m.)
My Observations and What to Expect
* Futures are seeing moderate weakness.
* Asian markets closed in the red, while European markets are experiencing heavy selling.
* S&P closed just a shade above the 20-day moving average; however, the market is poised to open well below that level.
* The 200-week moving average sits at 1,191. If that breaks, it would represent a shift in the market outlook.
* We’ll have POMO every day this week. The full schedule can be found here.
* So far, QE2 has been a “sell-the-news” event.
* Yesterday’s volume was well below average.
* The main goal for the bulls today will be to bounce off of the 20-day moving average and thus avoid a close below it.
* Bears should aim to close below 20-day moving average at 1,195 and the lows from Friday. Ideally, a close below 1,183 would cause a lot of problems for the bulls.
Actions I Will Be Taking
* Will look to add a new short position to the portfolio as a hedge.
* If the market closes below the 20-day moving average, I will close out my long positions as a result.
* Follow me in the SharePlanner Chat-Room today for all my live trades, including my day trades.
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