Trading Plan for Jan 14, 2011

Current Long Positions (stop-losses in parentheses): MWV (26.37), MMM (85.55), FCX (118.75), FSLR (135.30), FFIV (140.95), SLB (81.35)

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

BIAS: 35% Long

Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Retail Sales (8:30am), Industrial Production (9:15am), Consumer Sentiment (9:55am), Business Inventories (10am)

My Observations and What to Expect:

• Futures are showing moderate weakness. 
• Asian markets were mixed while European markets are trading with some weakness.
• Price action that we’ve seen since Wednesday is very similar to the price action from 1/3-1/5. If that is the case, we could see some strength off of the morning lows today. 
• No major price-pattern resistance overhead, instead it is coming in the form of a narrow channel that the market has been trading within since 12/1 and also an upper bollinger band that currently rests at 1288 on the S&P (see Wednesday’s market wrap-up for more detail). 
• There should be some support at 1278 on the S&P.
• 1261 represents the short-term ‘higher-low’
• Volume continues to be average, with no developing trends or concerns when examining it.
• The more long-term trend-line dating back to 9/1 currently has support at 1242.
• For the bears – Follow through on yesterday’s negative finish and close below Wednesday’s lows. 
• For the bulls – Show the “Buy-the-Dip” theory is still in full force and close the week out at new highs. 

Here Are The Actions I Will Be Taking:

• Not willing to add new positions to the portfolio today while the weakness persists. Will sit out the early morning at the very least, before deciding on any new positions. 
• Added SLB at $84.57 and FFIV at $144.80 – both breakout plays.
• Stopped out of FCX yesterday at $118.75 for a 2.7% loss. 
• All the stop-losses remain as is.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.