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Trading Plan for Nov. 16, 2010

November 16, 2010 – Comments (0) | RELATED TICKERS: SPY

Current Long Positions (stop-losses in parentheses): TICC (10.28), MCD (77.74), BIDU (104.74), GS (160.40), HRS (44.99), HTZ (11.78), KR (22.36)

Current Short Positions (stop-losses in parentheses): TFSL (8.69)

BIAS: 57% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Producer Price Index (8:30am), Redbook (8:55am), Treasury International Capital (9am), Industrial Production (9:15am), Housing Market Index (10am)

My Observations and What to Expect:

Futures are seeing moderate weakness. 

Asian markets closed in the red, while European markets are experiencing heavy selling. 

S&P closed just a shade above the 20-day moving average, however the market is poised to open well below that level. 

200-week moving average sits at 1191, which if that breaks, would represent a shift in the market outlook. 

We'll have POMO every day this week.

So far QE2 has been a "sell-the-news" event.

Yesterday's volume was well-below average. 

Main goal for the bulls today will be to bounce off of the 20-day moving average and thus avoid a close below it. 

Bears should aim to close below 20-day moving average at 1195, and the lows from Friday. Ideally, a close below 1183, would cause a lot of problems for the bulls.

Actions I Will Be Taking: