Current Long Positions (stop losses in parentheses): PH ($78.95), HK ($18.56), VMW ($82.30), RRC ($41.65), NVLS ($30.05)
Current Short Positions (stop losses in parentheses): DTV (41.29), V ($77.61)
Bias: 24% long
Economic Reports Due Out (times are EST): Employment Situation (8:30 a.m.), Factory Orders (10 a.m.), ISM Non-Manufacturing Index (10 a.m.)
My Observations and What to Expect
* Futures are flat heading into the open.
* Both Asian and European markets were mixed in trading.
* S&P 500 1200 is quickly being left in the dust and the new battle ground will be the 52-week highs set in November at 1,227.
* The current rally has the makings of what we saw back on Sept. 1, when we rallied for more than two months.
* Yesterday’s rally, on similar volume to that of Wednesday’s rally, offered the continuation that the bulls were seeking, and further legitimized this market rally. A push above 1,227 would likely trigger another wave of short covering.
* Going forward, I would expect the dip buying to be back in play for investors.
* The U.S. dollar is at an inflection point on its current upward trend. A push below the trend would signal further bullishness for the broader markets. A bounce followed by another leg up would pose a major problem for the bulls.
* The bears must defend the resistance at the November highs. A break there could see S&P rally as high as 1,260s and potentially into low 1,300s (best-case scenario).
* The bulls should look to close above the aforementioned resistance and push the rally into overbought territory.
Actions I Will Be Taking
* Will consider adding some additional long positions to the portfolio today.
* Closed positions in Ralcorp Holdings, Inc. (NYSE: RAH), Equity One, Inc. (NYSE: EQY), Equity Residential (NYSE: EQR), VistaPrint NV (NASDAQ: VPRT), ITT Corporation (NYSE: ITT) and FTI Consulting, Inc. (NYSE: FCN).
* 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.