Trading Plan for Nov. 18, 2010

Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10)

BIAS: 2% Short

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Leading Indicator (10am), Philadelphia Fed Survey (10am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

• Futures are up strong – over 1%.
• Asian and European markets are seeing gains of 1-2% across the board.
• Yesterday  the bulls were able to avoid further selling, and keep the price action within the consolidated trading range from October.
• Today’s  gap open will put the S&P in place to reclaim the 20-day moving average that it lost on Tuesday. Watch for whether this key average acts as support, much as it acted as support for the bulls prior.
• Markets are oversold on a short-term basis, which should further help today’s bulls.
• The one thing to be weary of in this rally, is whether it is a dead-cat bounce or not. It is very typical to see these extreme bounces in the market before resuming the selling efforts.
• We’ll have POMO every day this week. 
• Main goal for the bulls today will be to avoid a large and inevitable gap-fill (whether or not that’s today) and ultimately retake the 20-day moving average.
• Bears should do everything they can to break early morning lows, and fill this gap, and then get get below yesterday’s lows.

Actions I Will Be Taking:

• Will look to add 1-2 new positions to the portfolio today (a long and short position).
• Tightened the stop-loss in TFSL.
• Will look to tighten my stop-loss in HRS on market strength.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.