Thursday, December 22, 2011

S&P at Key Resistance - Big Breakout or More Chop???

Tomorrow should be interesting as the S&P is bumping right into key resistance levels.  A move above the trendline shown below would also likely be enough to take the 200 day MA back and trigger a lot of short covering.   Maybe we'll see a decent move into the end of the year.   Of course, maybe we'll see a breakout reversal that would frustrate everyone, as that is what this market is best at - remember that.   We're not real oversold here but another day or two up would get us there so remain careful - you don't have any other option in this market.
S&P 500

Some names I am watching long are below.   Right now I am in two longs and took profits on my BZ position from a few days ago.  
CSOD
NTSP
STMP
VHC
VNET

I did see some interesting potential short setups in my scans tonight and have those ready to go if the market fails here.   Check those out below.  

BIDU
GMCR
IRBT
SPRD
TVIX

Bottom-line here is keep your options open.  I am leaning long but won't hesistate to get to cash or go short tomorrow if the S&P shows it can't get over that key resistance level it is at now.   Hopefully we can get a breakout and a nice little year-end rally but the way this year has been, I somehow have my doubts.   Good luck Friday.

1 comment:

Anonymous said...

Merry Christmas Mac. Agreed, while I'm looking long, TVIX is good to have in the hip pocket in case of weakness - RSI2 = 0, RSI4 < 5.
- Clemer