Late Day Moves

1. Added to my position in DXO @ 2.57
2. Sold RIMM @ 53.89
3. Sold FAS @ 9.41
4. Sold my puts in PALM

If the market rolls over, look for a breakdown below $78.65.

Notable calls piece

Long RIMM (stop right below $49)

Short PALM

PALM finally broke down, and I’m looking for a continued move lower.

We are in a deadly range where both sides fight for control. At his point, it’s almost best to sit out until we get some clarity, or else get chopped to pieces.

If you caught my 3rd tier video last night, you would have noticed I was looking for a possible breakout in the S&P. We got the breakout immediately, but it failed to have any follow through– what a surprise.

Looking at the chart below, the red lines were drawn in the video. As you can see we got a breakout at the open, and then a nice pullback right to that support line– this is good news. The market is continuing to make a higher low after the bloody Obama inauguration day.

As you can see I have added a new line, the blue one, this is now the range I am watching: above 850, and I’m looking for a powerful rally, below our red support line, and I’m looking for November lows.

Current open positions:

• Long JPM (from $19)
• Long GOOG
• Long DXO
• Long JASO
• Long FAS
• Short PALM
• Short XOM

Update: RIMM looks like a slam dunk, set stop right below $49.

[youtube:http://www.youtube.com/watch?v=k6dvsbaXutE 450 300]

Top 10 Weekly Watchlist:

1. S&P 500, bullish if stays above 825
2. $TRANS, watch for a significant breakdown @ 2,900
3. VIX, breakdown below $46
4. EGO, long above $8.15
5. SLW, long above $7
6. USO, long above $33
7. PALM, watch for breakout or breakdown
8. S, watch for strength
9. GME, long above $26.50
10. GS, short on financial weakness

[youtube:http://www.youtube.com/watch?v=ngChYQyrz5w 450 300] [youtube:http://www.youtube.com/watch?v=qm68hWwmeSA 450 300] [youtube:http://www.youtube.com/watch?v=TxrSX0xIkDA 450 300]