The Dow Jones Industrial Average managed to finish in the black last week, barely. The Dow fought back Friday afternoon to close just above the 11,200 level. The SPX closed right at resistance and though this week is a short one, it could provide a clue as to market direction into the end of the year.
We think the 1200 level could provide some resistance for the SPX and it won’t get too much easier above that level as the chart tells us we will have some difficulty working through congestion all the way up to the 1230 level. To the downside we are watching the 1186 and then the 1170 level for support.
We are neutral going into this shortened week.
Weekly Economic Calendar:
Monday
- There are no major economic reports scheduled for Monday. Tyson Foods Inc. (TSN), Analog Devices Inc. (ADI), Brocade Communications Systems Inc. (BRCD), Focus Media Holding Limited (FMCN), Hewlett-Packard Company (HPQ), Jack in the Box Inc. (JACK), La-Z-Boy Inc. (LZB), and Pacific Sunwear of California Inc. (PSUN) will report earnings.
Tuesday
- The first revision of third-quarter gross domestic product is due Tuesday. The first estimate, released Oct. 29, showed subdued growth of 2%. In addition, the National Association of Realtors will report on existing home sales for October. Campbell Soup Company (CPB), Cracker Barrel Old Country Store Inc. (CBRL), Hormel Food Corp. (HRL), TiVO Inc. (TIVO), and Guess?, Inc. (GES) are scheduled to issue their quarterly reports.
Wednesday
- The Commerce Department will release its October figures for new home sales, durable goods orders, and personal income and spending, while the Labor Department will issue its weekly report on new jobless claims. Meanwhile, the University of Michigan will publish its final reading on consumer sentiment in November, and we’ll get the usual weekly report on crude inventories. Finally, the Fed will release the minutes of its Nov. 3 Federal Open Market Committee meeting. That meeting, at which the Fed voted to unleash QE2, the second round of monetary stimulus, has been pretty well chewed over, but we might learn some behind-the-scenes details of the debate. Scheduled to report earnings are Deere & Co. (DE) and Tiffany & Co. (TIF).
Thursday
- The market is closed for the Thanksgiving holiday on Thursday.
Friday
- There are no major economic reports scheduled for Friday. There are no major earnings reports scheduled for Friday.
New Trade Idea:
Buy Nordstrom (JWN) December 42 Call @ $1.75 or Better:
Nordstrom has been on a nice run lately but did pull back with the overall market. We’ll use this pullback as an opportunity to add calls. Use $4.50 as a target and we’ll use $0.75 as a mental stop-loss.
Buy Baidu (BIDU) December 110 Put @ $5.00 or Better:
Baidu has been in this consolidation range for a while now and we’ve been trading it pretty well. We think that this consolidation could resolve itself to the downside. Use $8.00 as a target and $1.75 as a mental stop-loss.
Open Positions:
Oracle (ORCL) November 28 Call @ $0.90:
We hit our target and locked in a nice +83% profit.
Juniper Networks (JNPR) Nov 30 Calls @ $1.80:
Target hit for a 122% profit.
Goldman Sachs (GS) November 160 Calls @ $4.15:
Took a 69% profit on the calls.
Cree (CREE) November 55 Calls @ $1.65:
This play as stopped-out.
Wynn Resorts (WYNN) November 115 Calls @ $2.70:
We hit our target for a 100% profit.
American International Group (AIG) November 45 Calls @ $1.55:
This play was stopped out.
TEN Exclusive: Options Update – 11/21/10 is an article from: 
