Trading Plan for October 29, 2010

Current Long Positions (stop-losses in parentheses): TICC (9.62), GLD (128.60), DDS (26.07), SSO (41.40), DIS (35.75), GS (160.35), SNDK (36.59)

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

BIAS: 53% Long

Economic Reports Due Out (Times are EST): GDP (8:30am), Employment Cost Index (8:30am), Chicago PMI (9:45am), Consumer Sentiment (9:55am).

My Observations and What to Expect:

• Futures are down moderately. 
• Asian markets saw some pretty heavy selling, while Europe is trading down a half percent.
• GDP will have a huge impact on the market. With everyone so desperately wanting QE2, a good GDP number might not be the best thing for the bulls today (funny how that works!).
• Should the market push beyond 1196 on the S&P and close above it, it would allow for the market to break out of this tight range and ultimately move higher.
• S&P again tried to push below the 10-day moving average but instead managed to close just above it.
• 5 out of the last 6 trading sessions have ended in a doji candle – the perfect definition of a gridlocked market.
• The market rally and the trend it is following still looks very healthy, though not strong as it once was – which isn’t a concern, as longer trends tend to flatten out some as time goes on.
• Still the bears need to push this market below Wednesday’s lows where it has recently found support at. Eventually to really dampen the bull’s spirits, it needs to push below 1159 or the 10/19 lows. .

Actions I Will Be Taking:

• Stop-losses tightened in GS, DIS, and GLD.
• Added SNDK to the portfolio yesterday.
• I do not plan on adding any additional stocks to the portfolio today. 
• Not hedged heading into the open.
• Follow me in the SharePlanner Chat-Room today for all my live trades, including my day-trades.