Trading Plan for Nov. 29, 2010
Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), RAH (60.75), MENT (11.08), EQY (16.75), PH (78.95)
Current Short Positions (stop-losses in parentheses): ADBE (28.55), DTV (42.55), EQR (51.15), VPRT (42.37), TIE (17.84), ITT (48.01)GLAD (11.54)
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
Futures are mixed, and well off their overnight highs, which saw the S&P up close to 1% at one point.
Asian markets closed with a decent amount of gains, while European markets are showing a significant amount of losses on the day.
Friday's market action put in a bearish harami candle pattern.
Despite the wild price swings of late, the market continues to consolidate within a narrowing range.
S&P remains within the October consolidation range.
Friday's sell-off represents another failed attempt by the bulls to rally the market beyond 1200.
50-day moving average is very much in play now for the bears.
Even more important than the 50-day moving average is the 1173 level on the S&P, which a break of it, would signal a lower-low in the markets, thereby killing the upward trend line coming off of the August lows.
The bulls must continue to focus its efforts on breaking the 1200 point price level.
Here Are The Actions I Will Be Taking: