Wednesday's Game Plan

Yesterday we had a broadbased sell off in the markets, the level that I will be looking to act as support today will be 130.00 in the SPY. If prices breach this level, I expect to see more selling take place. The strongest sectors yesterday were the gold and silver sectors, where both of them made new highs. I will continue to look at gold stocks as possible longs today. The weakest sector yesterday was the financial sector, I will be watching the XLF today and its key level of 16.35 to act as support. If that level is breached then I expected to see further selling in the sector. As mentioned in previous posts, I guage market weakness or strength through assessing both the strength of the tech and financial sectors. Tech is also weak and the XLK is about to breach its key level of 25.80. The market is currently in a transitionary process, volatility could be present in either direction today and until the market proves and clearly reflects its direction, I will be looking to book into momentum.

Longs

GG
SLW
CNQ
JDSU

Breakouts:

ANF>58.50
BBY
BK<29.88
AXP<43.00
BA<69.00
ORCL<31.60
LVS<41.70

Shorts:

AMGN
WMT
TGT
HPQ
BRCM
USB
PCAR
STI
MS
WDC
UAL