Trading Plan for November 18, 2010
Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (44.99)
Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10)
BIAS: 2% Short
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Leading Indicator (10am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
Futures are up strong - over 1%.
Asian and European markets are seeing gains of 1-2% across the board.
Yesterday the bulls were able to avoid further selling, and keep the price action within the consolidated trading range from October.
Today's gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday. Watch for whether this key average acts as support, much as it acted as support for the bulls prior.
Markets are oversold on a short-term basis, which should further help today's bulls.
The one thing to be weary of in this rally, is whether it is a dead-cat bounce or not. It is very typical to see these extreme bounces in the market before resuming the selling efforts.
We'll have POMO every day this week.
Main goal for the bulls today will be to avoid a large and inevitable gap-fill (whether or not that's today) and ultimately retake the 20-day moving average.
Bears should do everything they can to break early morning lows, and fill this gap, and then get get below yesterday's lows.
Here Are The Actions I Will Be Taking: