Thursday's Game Plan

Yesterday we had another inside day which which was also inside the day before, this will lead to volatility in either direction as contraction leads to volatility and volatility leads to contraction. The levels that I watch in the SPY are 130.00-129.70 as support and 133.00-134.70 as resistance. Overseas, markets sold off for various reason including Libya and Spains downgrage. As for sectors, the only thing to note from yesterday was the weakness demonstrated by the SMH sector as it took out its key support level at 34.50. If price hold below that level then I expect to see continuation to the downside, this in return could have a chain reaction affecting the QQQQ and SPY by not allowing it to move higher. The strongest sector yesterday was the XLU or utlilities sector. This reflects investors inconfidence at the moment in investing in more risky assets, the XLU along with the XLV or healthcare sector remains in play until the market paints a clear picture and demonstrates which direction it wants to head in.

Longs:

CHK: Above yesterday
RTN:As long as it stays above 52.50
A
ABT
HRB

Breakouts:

JCP>37.50
KSS>56.00
HD>37.85
WLP>70 (long term resistance at this level)
UNH>44.50
KO>65.90
LVS<41.70
AEM<67.00

Shorts:

NVDA: Below yesterday
CIEN: Has to hold below 24.80
CREE