Breakout Signals Resumed Uptrend

S&P 500 broke out of consolidation and resumed upward trend

   

Editor’s Note: Filing in for Sam Collins is Ryan Mallory, founder of the financial blog SharePlanner.com. Sam will return Monday, Nov. 8.

Current Long Positions (stop-losses in parentheses): TICC ($9.62), SNDK ($36.59), AMZN ($161.90), JACK ($23.16), GHL ($75.95), NFLX ($165.00)

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

Bias: 53% Long

Economic Reports Due Out (Times are EST): Monster Employment Index (6 a.m.), jobless claims (8:30 a.m.), productivity and costs (8:30 a.m.), EIA natural gas report (10:30 a.m.)

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 500 managed to close a point above the recent highs, allowing for it to break out of consolidation and resume the upward trend.

* The S&P 500 is poised to open above 1,200, which should it maintain this price level, would drastically improve the mood of the bulls.

* Yesterday’s FOMC meeting minutes were ultimately received well by the market, and usually allow for the market to experience two to three days of rallying solely off of the news.

* S&P 500 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 trendline off of the August lows that is in place.

Actions I Will Be Taking

* Took profits in ProShares Ultra S&P500 ETF (NYSE: SSO) during the Fed mayhem. SPDR Gold Shares (NYSE: GLD) was stopped out for a profit.

* Added only one additional position to the portfolio yesterday: Netflix, Inc. (NASDAQ: NFLX).

* Tightened my stop-loss in Amazon.com, Inc. (NASDAQ: AMZN). Expect to tighten more throughout the day on the heels of the market strength we are seeing.

* Will likely add one to two 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.

The SharePlanner Swing-Trading System is a proven trading strategy that has outpaced all the major indices with an 8-year return of over 1,010%. This year alone it is up 29%, with 64% of the stock picks being winners. It’s an easy trading system that requires very little effort after you buy the stock and great for those who can’t watch the market all the time! Find out more by visiting SharePlanner.com.


Article printed from InvestorPlace Media, http://investorplace.com/2010/11/market-analysis-breakout-signals-resumed-uptrend/.

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