SPY (26 November 2008)

Tuesday action shows that the market is getting ready for a big move soon. Most likely there will be a gap up or a gap down coming, this will trap either the bears or the bulls.
Its like a casino game, I am not too much into betting...good luck with your bets! ;)

The dollar decline might seem like a beginning of inflation, but I think you need next week to confirm this. Trading as we approach a holiday is usually thin so it is easier to manipulate the forex markets.



On GLD, it is likely that we will see some sideways action or possibly hit 83 before we see a decline again. I do not expect the decline to be much, but it can be traded. We shall see....still pending confirmation. Need more data to see whether this is a "buy the dip" or "short"




Here is an outline of my trading plan:
1. Attempt a short at 83
2. Go long at 88.45
3. If non of the above, expect another session of sideways action. Trading range will be very tight, these MMs are good.


My picks:
Long: PNC, ERX, RIG
Short: ERY, RIG