The Wrap 7/11/11


Tough day. Friday in hindsight may have been a small shot over the bow, We caved on Friday BUT we rallied late. Today we digested Fridays dismal jobs number, we also got a nothing done report on the debt ceiling. The killer though, was Italy, as the Euro nations called an emergency meeting to figure out how to deal wit the next possible domino. Italy has about three times the weight as Greece, Portugal and Ireland combined, so this one is potentially a whale of a problem.

I took a stop or two today that I didn’t take on Friday because we rallied Friday and although we stopped at some S&P support today, we didn’t rally at all.  The S&P tested and held the 50 day simple moving average, but tomorrow is another day. Tomorrow will be KEY to the direction for the rest of the trading week. The bears want a follow through day to the downside and the bulls want this to stop now before it gets out of hand.

I took EUO off the list for now, its OK to enter on a pullback. It gapped up through the trigger price, I will keep you posted. I removed some longs from the list, they may me added again soon pending market conditions. I will email any changes tomorrow.

Be cautious and trade SMALL here.

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