Tuesday's Game Plan

Yesterday was another narrow day on low volume, the SPY closed up for the day on a melted candle on below average volume and thats bullish. Gold was the strongest sector yesterday followed by commodities and oil stocks. Should the market and SPY hold above 122.50 level today then I'd consider that really bullish. However, if we fail to hold above and start coming in then that would signal some weakness, and next support is at 120.00. I wont short this market aggressively if I sense some weakness as we are still in a bullish market.

* After going through my entire list, I came to the conclusion that the weak day in the financials sector was probably due to profit taking after the massive day on Friday as most declining stocks in the sector were on below average volume.

Longs:

ABX: A long that out performed yesterday and demonstrated relative strength in the market after it reflected the strength in gold.

GG: Same as ABX

WLP: A long that broke out of its key level at 58.50 with its next IPT at 60.00. WLP reacted rather strong even though its in a weak sector at the moment which is the healthcare sector XLV, and that relative strength could provide a good opporutnity to go long today.

ALTR: A long and one of the strongest stocks from the SMH and technology sectors.

NEM: A long after the 1-2-3 bottom on the daily chart. yesterday this stock broke out on decent volume and I expect to see some follow through today. IPT 63.60

MS: A long after yesterday price action and even after the relative weakness from the XLF and financial sector this stock closed strong. IPT at 27.80

TXN: A long and a very strong stock that had an inside day.

BK: A long that held relatively well compared to the XLF sector after the massive breakout on Friday that could have been profit taking.

WFC: Same as BK.



Breakouts:

HAL > 33.50

HPQ > 44.60, IPT 46.30

COP> 62.60

DD> 48.50

Shorts:

MRK: A sell short that had an inside day after it broke out of its key level at 36.00 and another weak stock from the XLV sector.

HGSI: A sell short that sold off on Friday and yesterday after it followed the weakness in the XLV sector.