Trading Plan for Dec. 9, 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: 36% Long

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Wholesale Trade (10am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

• Futures are slightly up heading into the open. 
• Asian markets were slightly up, and Europeans markets are mixed.
• Yesterday’s price action was very choppy, but managed to rally at the end to just barely reclaim the 1227 level on the S&P – a bullish sign. 
• The last four sessions has been nothing more than consolidation by the market, with an ever so slight bullish bias to it. 
• I am not on ‘high-alert’ like I was yesterday, I think the likely scenarios right now is further consolidation or a new leg up in the market.
• 1216 also marks the lows for the consolidation. A break below, could mark further selling in the near-term. 
• 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.
• The 3-day rally we’ve seen in the USD has been on very light volume. 
• For the bears – Push price back below the 1227 level, close below it, and then push the markets below 1216. 
• 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:

• Any additional trades to the long side of the portfolio will likely be limited to day-trades. 
• Further strength in the market will probably stop me out of DTV.
• Looking at closing out my position in APOG.
• Tightened the stop-losses in VMW, APOG, and NFLX.
• Did not close out of any positions yesterday. 
• Added CX and NFLX to the portfolio.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.