Trading Plan For Dec. 10, 2010

Current Long Positions (stop-losses in parentheses): VMW (84.50), APOG (12.18), BIDU (105.80), ESV (48.75), CX (9.56), NFLX (179.67)

Current Short Positions (stop-losses in parentheses): DTV (40.50)

BIAS: 21% Long

Economic Reports Due Out (Times are EST): International Trade (8:30am), Import and Export Prices (8:30am), Consumer Sentiment (9:55am), Treasury Budget (2pm)

My Observations and What to Expect:

• Futures are moderately up heading into the open.
• Asian markets were down while Europeans markets are trading in the positive
• Yesterday’s price action continued to see a lot of choppiness, but nonetheless managed to hold the 1227 support level perfectly. 
• With baby-steps, we continue to climb every-so-slightly higher, though based on declining volume, and candle patterns, it has more of a “consolidation” look to it for now. 
• Yesterday, put to rest that the market was forming a double-top with the November highs. It is currently 6 points above the Nov. highs. 
• 1216 also marks the lows for the consolidation. A break below, could mark further selling in the near-term.
• Despite being overbought in the short-term, bullish rallies have the ability to remain so, far longer than we expect it to. It is my opinion that we are probably going to see another leg up very soon. 
• The current rally on the daily charts still has the makings of what we saw back on 9/1 which rallied for over two months.
• Dip buying will continue to be the name of the game for traders.
• Dollar is hitting resistance at the 10 and 100 day moving averages. 
• For the bears – Push back below 1227 and close beneath it, is an absolute must. 
• For the bulls – Build upon the 1227 level, by shooting up above 1235 and signaling a new move upwards.

Here Are The Actions I Will Be Taking:

• Will look to add 1-2 new trades to the portfolio today. 
• Further strength in the market will probably stop me out of DTV.
• Closed out my position in APOG at $12.67 – 4.8% gain. 
• Closed out my position in NFLX at $201.22 in the after hours for a 8.5% gain, when it was announced they were added to the S&P 500. 
• Stop-Losses remain as is. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.