Wednesday, October 12, 2011

Wednesdays Gameplan

Longs: XOM

Breakouts: C>28.25, BBY>26.00, HAL>35.75, SLW>31.75, SBUX>42.00, M>28.00, HON>48.00, ADBE>26.00, SO>43.00, COH (IDB R=59.80 S= 58.60), ARUN>24.00, KLAC>43.00

Shorts: AXP (46.00), DOW (27.00)

Notes:

XLK, XRT, XOP, XLE, OIH - Strongest sectors

XLF - Weakest

XLP, XLV, GLD - Weakens as risk appetite grows

TLT on the verge of a breakdown below 116.00 signaling that bonds are about to sell off, while the DX dollar index is also about to re-enter its previous range in support of more risk apetite.

SPY about to break its upper trendline from the 31st of August after touching it 9 times.

Given the facts above, the market seems to be at an inflection point.

Best idea: BBY

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