Longs: KLAC (SAT@38.00), HAL (SAT@52.00), SBUX (SAT@38.00), TJX (SAT@53.00 & 50SMA), MCD (SAT@85.00), JNJ (SAT@63.25 & 200 SMA), PM (SAT@69.25, 20DMA and Support), KO (SAT@67.00 & 50 DMA)
Breakouts: EBAY<31.70 (HBO Gap Cover), C<37.00, GG>49.75 (HBO & Gold strong), VLO <23.00
Shorts: WAG (Gap Cover), DOW, ETN, COF, ALTR
Notes:
The SPY has a last line of defence at 129.50, should this level be breached, I expect selling to continue. The last 3 down days have been on ascending selling, meaning that sellers are stepping up their selling.This being said, the market does look oversold at these levels, and a bounce might be in play today.
I will be looking for saturation longs in this environment given the oversold market. I will also not give them much room should selling re-ignite. My bias for this market is bearish at the moment, so any longs would be taken with extreme caution. Holding on to short positions is also a challange as markets get volatile and re-entries could be necessary stocks arent given enough room.
VIX @ 24.50
EUR/USD rallied overnight.
Should the market open inside yesterday, I will pay attention to the breakout levels and yesterdays low. Should yesterdays low be taken out on high volume then that would be a sell signal.
C<37.00, TJX, JNJ & GG
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