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Trading Plan for November 1, 2010

November 01, 2010 – Comments (0) | RELATED TICKERS: SPY

Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (41.84), DIS (35.75), GS (160.35), SNDK (36.59), AMZN (161.08)

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

BIAS: 42% Long

Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am), ISM Manufacturing Index (10am), Construction Spending (10am)

My Observations and What to Expect:

Futures are up moderately, but were up as much as 1% in overnight trading. 

Asian markets are up heavily, but European markets are flat.. 

Markets continue to trade inversely to the strength/weakness of the U.S. Dollar. 

Friday represented another tight and consolidated range. Market is poised to gap above Friday's highs, which helps out quite a lot in breaking this market out of the 2-week market range. 

Buyers could become inspired if the S&P can close above 1189 initially, and ideally 1196. 

4 straight days the market has tried to close below the 10-day moving average. Every time the moving average has been breached the market has rallied back. 

6 out of the last 7 trading sessions have ended in a doji candle - the perfect definition of a gridlocked market.

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 today. After that, the focus should be on pushing below Wednesday's lows at 1171. 

Actions I Will Be Taking: