Trading Plan for Nov. 4, 2010

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

BIAS: 53% Long

Economic Reports Due Out (Times are EST): Monster Employment Index (6am), Jobless Claims (8:30am), Productivity and Costs (8:30am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

• Futures are up strong heading into the open. 
• Asian and European markets as a whole saw gains in the range of 1-2%. 
• The S&P managed to close a point above the recent highs, allowing for it to breakout of consolidation and resume the upward trend. 
• S&P is poised to open above 1200 which, should it maintain this price level, would drastically improve the mood of the bulls. 
• Yesterday’s FOMC Meeting minutes was ultimately received well by the market, and usually allows for the market to experience 2-3 days of rallying solely off of the news. 
• S&P is all clear to challenge the April highs. 
• The bears should focus on breaking and closing below the 10-day moving average as well as the trend-line off of the August lows that is in place. 

Actions I Will Be Taking:

• Took my profits in in SSO during the Fed mayhem. GLD was stopped out for a profit. 
• Added only one additional position to the portfolio yesterday: NFLX
• Tightened my stop-loss in AMZN. Expect to tighten more throughout the day on the heels of the market strength we are seeing. 
• Will likely add 1-2 new positions to the portfolio today. 
• Not hedged going into the open.
• Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.