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Trading Plan for Nov. 3, 2010

November 03, 2010 – Comments (0) | RELATED TICKERS: SPY

Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (42.57), SNDK (36.59), AMZN (161.08), BAC (11.34), JACK (23.16), GHL (75.95)

Current Short Positions (stop-losses in parentheses): None

BIAS: 62% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Factory Orders (10am), ISM Non-Manufacturing Index (10am), EIA Petroleum Status Report (10:30am), FOMC Meeting Announcement (2:15pm)

My Observations and What to Expect:

Futures are up slightly - very little overnight price action. 

Asian and European markets are seeing positive gains. 

The market did break through the 200-week moving average, albeit by less than a half point, but the MA has acted as a major barrier to the market advancing further in this rally. 

Volume recently hasn't been overly strong. 

Still failed to close above recent highs. But today, the market is currently poised to gap above those highs. 

A break of recent highs should clear the way for the S&P to challenge the April highs.

Today's FOMC meeting will carry huge importance in defining the ultimate direction of the market session. Expect a lot of volatility. I'll also be sure to post the FOMC Statement at 2:15pm. 

Election mid-terms have seen bullish returns the last three times, and overall, mid-term election week, historically, tends to be very bullish.

The bears should focus their efforts in just closing below the 10-day moving average and Monday's lows. 

Here Are The Actions I Will Be Taking: