Current Long Positions (stop-losses in parentheses): VMW (83.70), RRC (44.59), FINL (18.60), ATVI (11.93), APOG (11.56), BIDU (105.80)

Current Short Positions (stop-losses in parentheses): DTV (41.09), GOOG (590.10)

BIAS: 18% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Consumer Credit (3pm)

My Observations and What to Expect:

  • Futures are up strong and could see an open up 1% from yesterday’s close. 
  • Asian markets were mixed, but European markets were up strong to the tune of 1-2%
  • As of this trading plan, the market is positioned to gap above the critical 1227 price level acting as resistance from last month. This is a very strong indication that the market will manage to hold the day’s gains above the 1227 level. 
  • For the time being, yesterday looks to be the short-term pullback we were looking for. If the market holds the gains today, and more importantly 1227, we should see a multi-day rally from here before getting another pullback. 
  • Not a lot of resistance in the near-term for the markets. A small bit of resistance at 1255, but the more significant resistance levels lie around 1270-1290. So this market has a lot of room to run in the near-term. 
  • Yesterday’s volume was very light, which is good for a pullback day. 
  • The current rally 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 failed to hold the trendline, and is positioned to move back down to its November lows. 
  • For the bears – push the market below 1227. Failure to do so will ignite a fury of stops. 
  • For the bulls – do not break the session lows after the first hour of trading, at any point, and move well beyond the 1227 level on strong volume. 

Here Are The Actions I Will Be Taking:

  • Will look to add some morning breakout plays to the portfolio today. 
  • Expecting to see GOOG get stopped out today, and possibly even DTV.
  • Tightened the stop-losses in DTV and VMW.
  • Stopped out of FINL at 18.60 yesterday for a profit. 
  • Added ATVI, APOG, and BIDU to the portfolio.
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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