Good evening. I am going to refrain from releasing new plays tonight. Tomorrow is shaping up to be quite day. The GDP data released in the pre-market is sure to set the tone early, however, all eyes will be on Ben Bernanke's speech at 10:AM EST. Who knows what he will say but I recall the saying "unusual uncertainty" in a recent speech to congress which sent the markets spiraling. The bottom line is that we are at critical support level and the market is hungry for information that we may not get. I seriously doubt there will be any groundbreaking changes in monetary policy, rather he will try to instill confidence which may be short of expectations.
We currently have 10 open positions in the model portfolio. If we get a big move tomorrow any of these positions may give readers a more favorable entry point than we currently have. I will also add that if we breakdown tomorrow it could be ugly and quick. On the contrary, good news could spark a short covering rally that could last a few days. We have positions on both sides of the market to take advantage of the moves. If we go lower I suggest being ready to take profits on short positions as our targets approach. We are already in oversold conditions and are nearing support levels which could spark an oversold bounce that turns into quite a reversal. We've seen it in the past and nothing tells me it can't happen again. Stay nimble and please email me with any questions.