As stated yesterday morning, since we have come within 1.25 points of reaching our next upside target at 1440 on the S&P 500, we have gone back to market neutral for the time being. We must now measure how any consolidation looks like. A shallow pullback with good support could easily push the S&P to 1450 – 1470. On the other hand a more forceful pullback that continues to find resistance could take us to 1365ish or so.
Right now is not the time to get blindly bullish anymore, the trade to get long (as we discussed in real time) was from around 1370 earlier this summer.
In terms of the stock that makes me most nervous for downside of the broader market is Intel (INTC)…
We remain long SKUL for bucket 2, only a 1/3 position for now. The stock needs to prove itself much more before we can consider adding to this position.
Global Cash Access Holdings (GCA)tried breaking out last week and yesterday but for now all it has to show for the efforts are two doji candles on the daily charts. We would not be buying nor shorting the stock here as at the very time being it is a 50/50 trade..and such not a high probability setup until it either breaks out or shows real sign of fatigue.