by Ryan Mallory | December 3, 2010 10:57 am
Current Long Positions (stop losses in parentheses): PH ($78.95), HK ($18.56), VMW ($82.30), RRC ($41.65), NVLS ($30.05)
Current Short Positions (stop losses in parentheses): DTV (41.29), V ($77.61)
Bias: 24% long
Economic Reports Due Out (times are EST): Employment Situation (8:30 a.m.), Factory Orders (10 a.m.), ISM Non-Manufacturing Index (10 a.m.)
* Futures are flat heading into the open.
* Both Asian and European markets were mixed in trading.
* S&P 500 1200 is quickly being left in the dust and the new battle ground will be the 52-week highs set in November at 1,227.
* The current rally has the makings of what we saw back on Sept. 1, when we rallied for more than two months.
* Yesterday’s rally, on similar volume to that of Wednesday’s rally, offered the continuation that the bulls were seeking, and further legitimized this market rally. A push above 1,227 would likely trigger another wave of short covering.
* Going forward, I would expect the dip buying to be back in play for investors.
* The U.S. dollar is at an inflection point on its current upward trend. A push below the trend would signal further bullishness for the broader markets. A bounce followed by another leg up would pose a major problem for the bulls.
* The bears must defend the resistance at the November highs. A break there could see S&P rally as high as 1,260s and potentially into low 1,300s (best-case scenario).
* The bulls should look to close above the aforementioned resistance and push the rally into overbought territory.
* Will consider adding some additional long positions to the portfolio today.
* Tightened the stop-loss in Petrohawk Energy Corporation (NYSE: HK[1]) and DIRECTV (NASDAQ: DTV[2]) to protect current gains.
* Closed positions in Ralcorp Holdings, Inc. (NYSE: RAH[3]), Equity One, Inc. (NYSE: EQY[4]), Equity Residential (NYSE: EQR[5]), VistaPrint NV (NASDAQ: VPRT[6]), ITT Corporation (NYSE: ITT[7]) and FTI Consulting, Inc. (NYSE: FCN[8]).
* Added Novellus Systems, Inc. (NASDAQ: NVLS[9]), VMware, Inc. (NYSE: VMW[10]) and Range Resources Corp. (NYSE: RRC[11]).
* Follow me in the SharePlanner Chat-Room[12] today for all my live trades, including my day trades.
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