Trading Plan for November 2, 2010

Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (130.99), SSO (41.84), SNDK (36.59), AMZN (161.08), BAC (11.34)

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

BIAS: 52% Long

Economic Reports Due Out (Times are EST): FOMC Meeting Begins, ICSC Goldman Store Sales (7:45am), Redbook (8:55am)

My Observations and What to Expect:

• Futures are up moderately, and have steadily improved throughout overnight trading. 
• Asian markets are slightly up, while Europe is seeing some respectable gains on the day. 
• The inability of the market to break through the 200-week moving average, has halted this market in its tracks the last 2-weeks. A break through would nearly guarantee we go much higher. 
• Bulls did breach the 200-week moving average yesterday on an intra-day basis, which isn’t something the bulls were able to do the previous two times. 
• A test of the 10/25 highs failed as we touched them and then proceeded to sell-off thereafter. 
• A very large doji candle yesterday is the 7th in the last 8 market sessions. 
• Once again, the bulls managed to keep the markets above the 10-day moving average at the close despite trading below it on an intra-day basis. 
• A break and close above 1196 would ensure us that we have broken out of consolidation. 
• Election mid-terms have seen bullish returns the last three times, and overall, mid-term election week, historically, tends to be very bullish.
• The bears should focus their efforts in just closing below the 10-day moving average today. After that, the focus should be on pushing below Wednesday’s lows at 1171.

Actions I Will Be Taking:

• No positions were closed yesterday. 
• Added BAC to the portfolio yesterday but with an extremely tight stop-loss. 
• A breakout above 1196, would likely be reason for me to become more aggressive with my portfolio. 
• Not hedged going into the open.
• Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.