Opening at new highs-

The Anatomy of the Trade

Things you could have seen to anticipate this move to new highs:

• Thursday November 5th--Day one of the attempted rally

• Friday--Unemployment Report--10.2%, UUUGGGLYYY--the Market yawned (this was a clear sign of relative strength off a weak number).

• Monday--The market took back the 1075-1080 zone on the S&P, which had been the broken trendline.

• Tuesday--Inside day, with no pull-in following a powerful move higher. Market leaders traded nicely, with plenty of stocks making new move highs (take a look at AMZN for an example).

I could list 10 other technical factors, but no need to bore everyone with the details.

We are now opening at new move highs with some stocks extended and some with additional room to run. It does seem like 1120-1130 will be a reasonable spot on the S&P before we attempt macro shorts. Of course you can do micro trades based on strategies and intraday action (like yesterday with the RedDog reversal trade).

Watch 1101 on the S&P--make sure the market can hold above that area, otherwise the trade can change.

Sector Rundowns:

• Banks are still lagging the market, but can play catch up.

• Gold continues to move higher.

• Agriculture stocks are not compelling, but you can see squeezes like we saw in MON yesterday.

• Oil ***Trying very hard to hold its upper range--WE COULD SEE A BREAKOUT through 81-82 soon--keep in mind, the oil number will come out tomorrow due to the Veteran's Day holiday today.

• Tech--pick your spots--apply a stock specific strategy to this sector. There are some stocks at new move highs and some playing catch up.

• Casinos woke up on Monday and should continue to move.

Managing the Trades

• AAPL and GS met my easy long targets and I am selling in my swing accounts, although they can move higher from here.

• Gold--I continue to hold one tier after selling my trading tier--there has been no setup to get back in for more.

• I am in my core LVS and MGM positions, and will lighten up in the 18 area on LVS. MGM I'm still not sure.

• RIMM--very funny--two downgrades in the last week around the bottom (56-58) and the stock is now back in the 65 range--could be a short on the open.

The meat and potatoes of most of these moves are off the table--now it's time to be light and flexible again. Two weeks ago we were in the 1035 area and now we are opening at NEW HIGHS. Remain disciplined and plan accordingly.

Scott