Trading Plan For Nov. 22, 2010

Current Long Positions (stop-losses in parentheses): TICC (10.28), HRS (45.34), CEL (32.89), BMRN (25.80)

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

BIAS: 2% Short

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

• Futures are down slightly afters selling off more than 11 points from the overnight highs on the S&P contract.
• Asian and European markets are mixed, but the latter has given up most of its gains from earlier in the trading session. 
• 1200 will continue to be the rally-cry for both the bulls and bears. 
• While the bulls managed to close above the 20-day moving average, the 10-day has been acting as additional resistance.
• The inability to hold overnight highs, and if the bulls cannot push through 1200 early on in today’s trading session, will be a very bad sign for bears and could lead to an another sell-off in the market.
• Thursday and Friday’s strength should not be perceived as anything more than a dead-cat bounce at this juncture. 
• 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 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 the 10-day moving averages must be retaken. Anything else will be indicative of failure. 
• Thanksgiving week traditionally has a bullish bias. 

Actions I Will Be Taking:

• Will look to add 2 new positions to the portfolio today (a long and short position).
• Tightened the stop-loss in BMRN. Will likely tighten CEL today as well. 
• EQR (short) and BMRN (long) are the latest additions to the portfolio. 
• May be tempted to book my gains in TFSL at some point today. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.