Mondays Game Plan

Geo political and natural disasters continue to take their toll on the market from last week on global equities, other than that we have no significant news reports coming out today. The SPY on the other hand held support on Friday and failed to breach its key level, I see that as bullish till proven otherwise. The next thing I want to see in the SPY is a breach of the 131.00 level; if it is breach then I see room to the upside with 133.00 as next resistance. To the down side, the 129.50 level is key; if it is to be breach then I expect to see broad based selling. On a side note, the weakest industry last week was the SMH industry. If weakness persists in this industry than it could burden the market as the SMH is a major part of the technology sector and technology plays a major role on the market and SPY. The strongest sector was Major Airlines preceded by Specialty Eateries. As for the month, Silver and Long-Term Care Facilities industries are the strongest.
We are still in a balancing environment here, I will remain cautious here by setting up a plan that fits my risk parameters for the day and by picking the best stocks under this environment. I also plan on booking into momentum going into today’s session. In this market its either grab what you have or wait for it to be taken from you.

Longs:
 
CIEN>25.00
SLW>42.30
CHK>33.00
WLP
TRV
 
Breakouts:
 
RTN>52.50
PEP> 64.75
ABT>49.00
ALTR(ID)
HON(ID)
AKAM(ID)
 
Shorts:
 
EBAY
GLW
ORCL<31.50
TXN<34.00