Market Close to Putting in Lower Low

by Ryan Mallory | November 17, 2010 9:35 am

Current Long Positions (stop losses in parentheses): TICC ($10.28), HRS ($44.99)

Current Short Positions (stop-losses in parentheses): TFSL ($8.30), ADBE ($30.10)

Bias: 2% Short

Economic Reports Due Out (times are EST): MBA Purchase Applications (7 a.m.), Consumer Price Index (8:30 a.m.), Housing Starts (8:30 a.m.), EIA Petroleum Status (10:30 a.m.)

My Observations and What to Expect

* Futures are seeing moderate strength this morning after yesterday’s huge sell-off.

* Asian and European markets were mixed.

* S&P gapped below the 20-day moving average and closed underneath it as well.

* We’re very close to putting in a “lower low” in this market.

* The 50-day moving average could offer some support should the market drop that far.

* Yesterday’s closing brought us back to the October consolidation zone.

* We’ll have POMO every day this week. The full schedule can be found here[1].

* So far QE2 has been a “sell-the-news” event.

* Yesterday’s volume was very strong, which supported the price move.

* The bulls’ main goal for today will be to keep the markets from seeing any follow through.

* Follow through is key for the bears, as so many times this year, it has failed to do so.

Actions I Will Be Taking

* Will look to add one or two new positions to the portfolio today (a long and a short), but today is a travel day for me, which may hinder my trading.

* Closed my positions prematurely yesterday in Goldman Sachs Group Inc. (NYSE: GS[2]), The Kroger Co. (NYSE: KR[3]) and Baidu.com, Inc. (NASDAQ: BIDU[4]).

* Stopped out of my positions in McDonald’s Corp. (NYSE: MCD[5]) and Hertz Global Holdings, Inc. (NYSE: HTZ[6]).

* Tightened the stop-loss in TFS Financial Corporation (NASDAQ: TFSL[7]) to $8.30.

* Follow me in the SharePlanner Chat-Room[8] 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[9].

Endnotes:

  1. here: http://www.newyorkfed.org/markets/tot_operation_schedule.html
  2. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  3. KR: http://studio-5.financialcontent.com/investplace/quote?Symbol=KR
  4. BIDU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIDU
  5. MCD: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCD
  6. HTZ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HTZ
  7. TFSL: http://studio-5.financialcontent.com/investplace/quote?Symbol=TFSL
  8. SharePlanner Chat-Room: https://shareplanner.com/education-center/chat-room.html
  9. SharePlanner.com: https://www.shareplanner.com/trading-system/swing-trading-system-long-setups/trading-statistics.html

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