Trading Plan for Nov. 23, 2010

Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), CEL (34.17), BMRN (25.80), RAH (60.75)

Current Short Positions (stop-losses in parentheses): TFSL (8.23), ADBE (30.10), DTV (43.30), EQR (51.15), VPRT (42.37)

BIAS: 2% Short

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), GDP (8:30am), Corporate Profits (8:30am), Redbook (8:55am), Existing Home Sales (10am), FOMC Minutes (2pm)

My Observations and What to Expect:

• Futures are down in excess of 1% heading into the open. 
• Asian markets down in excess of 2% and European markets are down over 1%. 
• Today is shaping up to be another rejection at 1200 after yesterday’s late day rally up near the price level. 
• Bulls managed to bounce off of the existing trend-line (albeit a flatter one), and once again closed back below the 20-day moving average. 
• Bullish flag forming on the charts, could be indicative of a potential move higher in the near future. 
• Conflict between N. & S. Korea is adding to the losses we are seeing this morning. 
• This is what it boils down to…a break below 1189 on the S&P will be a strong indication we are putting in a ‘lower-high’, which isn’t a total game changer, but a break of 1173 (also the same price of the 50-day moving average) over the coming days is – as it would establish a new downtrend with a ‘lower-low in place’.
• For the bulls, the 1200 price level  and a break out of this flag pattern will change the sentiment of this market. 
• Expect lower volume as the week continues to progress in lieu of Thanksgiving. 

Here Are The Actions I Will Be Taking:

• Will look to add 2 new positions to the portfolio today (a long and short position).
• Closed out positions in TFSL and BMRN.
• VPRT (short) and RAH (long) are the latest additions to the portfolio.
• Tightened my stop-loss in CEL to break-even. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.