Stock Trading Plan For Wednesday(CSTR, SHOO, JDSA,GLD, OPEN, SPY)

MARKET ASSESSMENT The markets saw further profit taking on Tuesday ahead of the Thanksgiving holiday and additional taking off of the risk trades due to the European crisis. Ireland is close to a bailout and Portugal and Spain appear to be next. The fact that Germany and the UK are major creditors of Spain means we could see a fear that this whole thing could spiral into a 1997 Asian like crisis as the contagion spreads throughout the global economy. Now this is the talk of the day but let’s take a step back and see what this means to us. In the short term we should see a flight back to the US Dollar as a safe haven and a selloff in commodity driven names as well as general weakness in US equities. This is what everyone is afraid of but we have already been through this scenario multiple times this year. Every time we have rallied after the fear comes to a head, the short term traders have finished dumping their shares and we get statistically oversold. Even though we have plenty of excuses of why the market is selling off, the only reason is the market is just way too stretched to the upside. First of all, we have had a huge run off the August lows of 15.7% on the DOW, an 18% run in the S&P 500, and a massive 23% run in the NASDAQ. Once again we nailed the bottom adding a huge number of positions on August 26 and have seen our stocks run 30%, 40% even 92% during this time period. The market has had the help of the elections and a more business friendly environment or at least gridlock in DC, and we have had the help from the fed with their quantitative easing part 2 buying up assets. All of these reasons have helped buoy the market to levels that statistically don’t occur too frequently. Regardless of what the media believes, the market just can’t go straight up forever. We are long overdue for profit taking and could easily see a move south another 5% or so and when you are so overbought like we are now any news can start the profit taking. What this could mean to the leading names and stocks at nosebleed levels is a massive correction of 10%, 20% or 30% from current levels. Our point is that we will get through these emotional reasons to sell but in the short term we need to brace for the potential of a continued correction. SPY     OPEN POSITIONS We had 4 trade candidates on Tuesday and only OPEN triggered rallying as much as 3.45% intraday. It did pullback off the highs but the trade is still up over a point for the day GLD CSTR SHOO   NEW SETUPS We would look to buy JDAS on a move above the following prices JDAS 26.65 To sign

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