Trading Plan for Nov. 30, 2010
Current Long Positions (stop-losses in parentheses): TICC (10.28), RAH (60.75), EQY (16.75), PH (78.95), BAC (11.02)
Current Short Positions (stop-losses in parentheses): DTV (42.55), EQR (51.15), VPRT (42.37), TIE (17.84), ITT (48.01) GLAD (11.54), FCN (36.74)
BIAS: 18% Short
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), Farm Prices (3pm)
My Observations and What to Expect:
Futures are down slightly.
Asian markets finished the day down, with the Nikkei down 1.9%. European markets are mixed.
Despite the market finishing down yesterday, the market showed a lot of intraday strength rallying off of the 1173 price level.
Even with recent market weakness, dip buying is not dead as of yet, though the last three hammer candles have been met with a significant sell-off the following market session.
A bearish descending triangle is forming on the S&P, signaling that a break to the downside could be imminent.
S&P continues to find support from the October consolidation range.
We dipped below the 50-day moving average, but quickly rebounded to finish well above it.
The only price level the bears need to concern themselves with is 1173. Close below it, and the upward trend line from the August lows is dead.
For the bulls, aim for 1200 and close above it, which would also represent the 20-day moving average as well.
Here Are The Actions I Will Be Taking: