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Market Close to Putting in Lower Low

However, the 50-day moving average could offer some support should the market drop that far


Current Long Positions (stop losses in parentheses): TICC ($10.28), HRS ($44.99)

Current Short Positions (stop-losses in parentheses): TFSL ($8.30), ADBE ($30.10)

Bias: 2% Short

Economic Reports Due Out (times are EST): MBA Purchase Applications (7 a.m.), Consumer Price Index (8:30 a.m.), Housing Starts (8:30 a.m.), EIA Petroleum Status (10:30 a.m.)

My Observations and What to Expect

* Futures are seeing moderate strength this morning after yesterday’s huge sell-off.

* Asian and European markets were mixed.

* S&P gapped below the 20-day moving average and closed underneath it as well.

* We’re very close to putting in a “lower low” in this market.

* The 50-day moving average could offer some support should the market drop that far.

* Yesterday’s closing brought us back to the October consolidation zone.

* 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 very strong, which supported the price move.

* The bulls’ main goal for today will be to keep the markets from seeing any follow through.

* Follow through is key for the bears, as so many times this year, it has failed to do so.

Actions I Will Be Taking

* Will look to add one or two new positions to the portfolio today (a long and a short), but today is a travel day for me, which may hinder my trading.

* Closed my positions prematurely yesterday in Goldman Sachs Group Inc. (NYSE: GS), The Kroger Co. (NYSE: KR) and, Inc. (NASDAQ: BIDU).

* Stopped out of my positions in McDonald’s Corp. (NYSE: MCD) and Hertz Global Holdings, Inc. (NYSE: HTZ).

* Tightened the stop-loss in TFS Financial Corporation (NASDAQ: TFSL) to $8.30.

* Follow me in the SharePlanner Chat-Room today for all my live trades, including my day trades.

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