Our cautious stand on the short side (very few short positions) paid off yesterday and as suspected a rally arrived that left serious wedgies on many who piled into fresh shorts on Monday.  While anything is possible in this tape it does look likely for stocks to rise further in the next few weeks.  On the S&P 500 we will go with the following targets, one step at a time: 1270, 1290, 1300, and then the range between 1310 – 1340

Also note the narrowing trading range that has formed since the end of September.  We don't necessarily have to breakout in either direction and keep trucking…but a break above 1260 should get us to the high 1200s and a break below 1200 to the low 1100s.

No real economic news today that could move the market.  The ECB bank-lending holiday gift announced this morning popped the market but things have cooled a little since.

We remain long Bucket 2: MMM, FDX, and some SPY.

In Bucket 3 we remain long GDX and long RIMM.

Our trading plan today (as laid out yesterday on the blog) is to buy into weakness in the early going today…we will look to buy some EAT.

 

 

 

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