Trading Plan for Jan 14, 2011
Current Long Positions (stop-losses in parentheses): MWV (26.37), MMM (85.55), 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 (8:30am), Retail Sales (8:30am), Industrial Production (9:15am), Consumer Sentiment (9:55am), Business Inventories (10am)
My Observations and What to Expect:
Futures are showing moderate weakness.
Asian markets were mixed while European markets are trading with some weakness.
Price action that we've seen since Wednesday is very similar to the price action from 1/3-1/5. 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 12/1 and also an upper bollinger band that currently rests at 1288 on the S&P (see Wednesday's market wrap-up for more detail).
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 when examining it.
The more long-term trend-line dating back to 9/1 currently 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 still in full force and close the week out at new highs.
Here Are The Actions I Will Be Taking: