Current Long Positions (stop-losses in parentheses): MWV (26.37), MMM (85.55), FCX (118.75), FSLR (135.30), FFIV (140.95), SLB (81.35)
Current Short Positions (stop-losses in parentheses): None
BIAS: 35% Long
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30 a.m.), Retail Sales (8:30 a.m.), Industrial Production (9:15 a.m.), Consumer Sentiment (9:55 a.m.), Business Inventories (10 a.m.)
My Observations and What to Expect:
- Futures are showing moderate weakness.
- Asian markets were mixed while European markets trading with some weakness.
- Price action that we’ve seen since Wednesday is very similar to the price action from Jan. 3 to Jan. 5. If that is the case, we could see some strength off of the morning lows today.
- No major price-pattern resistance overhead, instead it is coming in the form of a narrow channel that the market has been trading within since Dec. 1 and also an upper Bollinger Band that currently rests at 1288 on the S&P 500 Index.
- There should be some support at 1278 on the S&P.
- 1261 represents the short-term ‘higher-low’
- Volume continues to be average, with no developing trends or concerns.
- The more long-term trend-line dating back to Sept. 1 has support at 1242.
- For the bears – follow through on yesterday’s negative finish and close below Wednesday’s lows.
- For the bulls – show the “Buy-the-Dip” theory is in full force and close the week out at new highs.
Here Are The Actions I Will Be Taking:
- Not willing to add new positions to the portfolio today while the weakness persists. Will sit out the early morning at the very least, before deciding on any new positions.
- Added Schlumberger (NYSE: SLB) at $84.57 and F5 Networks (NASDAQ: FFIV) at $144.80 – both breakout plays.
- Stopped out of Freeport McMoRan (NYSE: FCX) yesterday at $118.75 for a 2.7% loss.
- All the stop-losses remain as is.
- Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.
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