Your Signal to Cash Out

by Ryan Mallory | November 16, 2010 9:17 am

Current Short Positions (stop losses in parentheses): TICC ($10.28), MCD ($77.74), BIDU ($104.74), GS ($160.40), HRS ($44.99), HTZ ($11.78), KR ($22.36)

Current Short Positions (stop-losses in parentheses): TFSL ($8.69)

Bias: 57% Long

Economic Reports Due Out (times are EST): ICSC-Goldman Store Sales (7:45 a.m.), Producer Price Index (8:30 a.m.), Redbook (8:55 a.m.), Treasury International Capital (9 a.m.), Industrial Production (9:15 a.m.), Housing Market Index (10 a.m.)

My Observations and What to Expect

* Futures are seeing moderate weakness.

* Asian markets closed in the red, while European markets are experiencing heavy selling.

* S&P closed just a shade above the 20-day moving average; however, the market is poised to open well below that level.

* The 200-week moving average sits at 1,191. If that breaks, it would represent a shift in the market outlook.

* 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 well below average.

* The main goal for the bulls today will be to bounce off of the 20-day moving average and thus avoid a close below it.

* Bears should aim to close below 20-day moving average at 1,195 and the lows from Friday. Ideally, a close below 1,183 would cause a lot of problems for the bulls.

Actions I Will Be Taking

* Will look to add a new short position to the portfolio as a hedge.

* Stopped out of Mentor Graphics Corporation (NASDAQ: MENT[2]) and Citrix Systems, Inc. (NASDAQ: CTXS[3]) yesterday.

* If the market closes below the 20-day moving average, I will close out my long positions as a result.

* Follow me in the SharePlanner Chat-Room[4] 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[5].

Endnotes:

here: http://www.newyorkfed.org/markets/tot_operation_schedule.html
MENT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MENT
CTXS: http://studio-5.financialcontent.com/investplace/quote?Symbol=CTXS
SharePlanner Chat-Room: https://shareplanner.com/education-center/chat-room.html
SharePlanner.com: https://www.shareplanner.com/trading-system/swing-trading-system-long-setups/trading-statistics.html

Source URL: https://investorplace.com/2010/11/your-signal-to-cash-out/