Current Long Positions (stop-losses in parentheses): BZ (7.86), GS (169.80), GLD (132.80), ATML (12.21), GNK (14.37), MI (6.77), DF (8.58), LSI (5.91)

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

BIAS: 49% Long

Economic Reports Due Out (Times are EST): Monster Employment Index (6am), Jobless Claims (8:30am), Treasury STRIPS (3pm)

My Observations and What to Expect:

  • Futures are showing moderate strength heading into the open.
  • Asian and European markets are both showing strength in their respective markets. 
  • Despite the heavy selling at the open yesterday, the market managed to close at new rally-highs. 
  • Current trend-line was maintained as well as the 10-day moving average. 
  • Volume in line with previous two day’s volume reading. 
  • 10-day moving average and existing trend-line are marching upwards in near unison – which is currently at 1262 on the S&P. 
  • Nice bullish engulfing candle pattern formed over the past two trading sessions. 
  • 1276 is starting to provide some short-term resistance – but nothing that I would call ‘significant’ at his point.
  • The more long-term trend-line dating back to 9/1 currently has support at 1233.
  • I am still concerned about the similarities to S&P on 11/4, the chart proceeding it, and the type of chart we have now, dating back to late December’s consolidation. A good, strong rally today, would be a reason to take a lot of profits off the table. 
  • Gold, Dollar and Equities relationship seems to have problems with its traditional correlation. Still a lot of mixed signals among these three classes. 
  • Any break below recent consolidation (1250 or less on the S&P) would represent a lower-low in this market.
  • For the bears – Keep the market from advancing or at least from closing above 1276 – doing so strengthens the resistance of the S&P at this price level. 
  • For the bulls – Capitalize off of yesterday’s rally off the lows, and push the market higher, and away from the trend-line, which is typical of strong trending markets, that it has been hugging of late. 

Here Are The Actions I Will Be Taking:

  • 1-2 Stocks may be added to the portfolio today. 
  • Watching VVUS and ALKS with great interest today. 
  • Closed out of GLD for a 0.8% loss at $134.32.
  • Added DF at $8.91 and LSI at $6.14. 
  • Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.

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