Stock Watch-List for November 2, 2009

Good Morning and welcome to the start of a new month – it’s amazing how fast this year has gone by and that we are now into the Christmas season (from a retail standpoint at least) – before we know it we’ll be knocked out on the couch, having stuffed ourselves on turkey and mash potatoes, and with the Detroit Lions losing another Thanksgiving Football game  in the background. But until then, there is plenty of trading and postings to do – so let’s get started on it…

Overnight Asian markets sold off with the Nikkei dropping 2.3% while the other indices saw declines of 0.2% to 0.6%. On the other side of the Atlantic, you have markets trading up about 0.1% to 0.5% – nothing major. US Futures are showing a positive bias with the Dow currently up 55 points, while the Nasdaq and S&P are each up 5.25 and 7 points. We don’t see any major economic reports come out until 10am this morning, at which point, ISM Manufacturing Index, Construction Spending, and Pending Home Sales Index are scheduled to be released.

Over the past week, the indices took on some major technical damage with the hardest hit being the Russell Index, confirming a nasty double-top formation. With the amount of selling we have seen of late, it wouldn’t be terribly surprising if we get a bounce out of the market today, much like Thursday’s rally. I would tighten stops and protect your profits where you can. As of right now I am short AMZN, GD and long on SDS and GLL. In all, my portfolio has a 100% bearish bias.

Here are Today’s Trade Setups…

Bullish Candle Setups: SLG, STRA, LPX, GOLD, CRMT, AMCC, ORB, FDP, JPS

Bearish Candle Setups: NG, MCO

Ready for a Bounce: WINN, PVTB, ORB

Ready for a Pullback: CVH, PNFP, PIKE