Thursday, February 17, 2011

Thursday's Game Plan

Yesterday we cleared the important 133.50 level in the SPY but did so on below average volume. The SPY's range was also narrow but managed to close above the level at 133.85. The divergence yesterday gave us a sign intraday that the market wasn't as strong as it should have been after clearing the key level, the second higher high in the SPY was not followed by another higher high in the NYSE TICK's, this divergence was a weak sign that prompted me to take profits and wait on the sidelines. It was a wise decision as the NYSE TICK rarely lies.

As for the strongest sectors yesterday, oil came in first followed by the retail sector. Today I will be looking for the SPY to contine to hold above the key level for me to be long and if the market trades inside yesterday then I will stand aside as a another choppy day seems likely.

Longs:

JDSU
HAL
JPM
ADBE
ALTR
IAG

Breakouts:

AET>38.10
HPQ>49.35
BA>73.00
AXP>47.00 Triple Top
TWC>72.50
DD> Multi Year High Breakout.
XOM(2 ID)
SWN(2 ID)
EBAY> 34.80
BRCM<41.80

Shorts:

CELG (B trade)
PCAR
EXPE

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