Tuesday Gameplan

Longs: UNH (SAT@ 49.00 & 20 SMA) , JDSU (SAT@16.50 & 200SMA) , BRCM (SAT@32.00)

Breakouts:BBY<28.50, UTX<82.50, TWX<34.50, DOW<34.75, EBAY<29.50, XOM<79.00, MRO<49.00, JNJ>73.25

Volatility: SNDK (R= 42.75 S= 42.00)

Shorts: C (SAT@39.50), JPM (SAT), MS (SAT), DPS (SAT@41.00), DD

Notes:

Choppy SPY yesterday where the market did nothing, we are approaching the primary buy zone and support. I will be focusing on my saturation plays today as they can play out really well. The bounce in the financials confuses me a little bit, it was on high volume which might signal that the sector has bottomed out. The second scenario is that the bounce range wasn't strong enough which might indicate that the buying was met by selling.

In such circumstances, it is best to play it safe and go contrary to what every one is doing through the saturation plays. The energy sector is still weak and sentiment is still bearish. Pre-market the Euro is bouncing from the inside day formed yesterday. It will be interesting to see how and where the markets open today. Caution is required in these conditions, I will continue to take profits on momentum.