Shopping List

X: nothing going
F: three year chart no good
JCP: w/ a break above 34.50, maybe
BRCM: looking very bearish but against every disciplined, technical fiber in my body I may consider bottom-fishing at 30.
EMC: w/ a break above 25, maybe
QCOR: breaking above 44.50 on average volume
DE: double top breakout. In w/ a spec stake today, $79.12.
CSCO: w/ a break above 19 I'm in.
RSU: into 1/2 stake in the 38s

S&P Move Above 1220

This move above 1220 looks significant enough to get bullish for the near term. I have a laundry list and will go through each of the charts and stories over the next 48 hours. It's time to snack on some positions.

Market Looking to Rally Big

In a surprise move China's central bank cut the reserve requirement ratio for its commercial lenders for the first time in nearly three years. "It's a surprising move - the market was not expecting the central bank to (cut RRR) so fast," said Shi Chenyu, an economist with the investment banking unit of Industrial and Commercial Bank of China.

Also, the World's major central banks made it easier for banks to get dollars if they need them, a coordinated move to ease the strains on the global financial system. The ECB said in a statement the central banks were making it cheaper for banks to get U.S. dollar liquidity when they need it, starting next Monday.

My intention was to get out of RSW if the S&P broke back above 1205. Sadly it will gap up and give me a poor shot of getting out good. Glad I took some off the table a week ago.

Corning (GLW $13.09)

GLW is down over 10% today one day after I'd mentioned getting some. They've cut their fourth-quarter sales forecast for its Gorilla Glass. This type of action is precisely why it's pivotal to buy breakouts on strength. I was willing to miss 5% of upside to buy over 15.50 in order to avoid a 10% pitfall today. I'll reset my expectations now. I'm not sure that I'll buy any down here in the 13s but for now I'm just glad to have avoided a big loss.

Corning (GLW $14.92)

Good 'ole Corning, NY. We go through this great little town every time we drive to upstate New York. Great countryside, great museum and great products. Looking to get into some GLW with a break above $15.50.

What's Next?

Markets are rallying today on strong, preliminary Black Friday results.
There is also December 9th to keep in mind when a European Union summit will take place to tackle the euro zone debt crisis.
El-Erian's "3 Things to Watch".

Fed's Black Sky Scenario

Found this interesting in Business Insider.
Fed's Black Sky Scenario is revealed as having some ugly numbers. An unemployment rate of over 13% and a DOW of 5600 for starts. Thirty one banks must complete a stress test against this scenario and the list is right here.

RSW

Selling some RSW at a profit before the long, feel-good weekend. I'm hanging on to the rest unless 1205 gets taken out.

S&P & the 1225

If the S&P breaks down below 1225 and I'm in for another bite of bear:

S&P @ 1260

I just feel that this thing is gonna' roll over and I'm willing to roll the dice. Despite what Buffet says there is too much uncertainty out there and it smells.

More FAZ & RSW

Yes, retail numbers were pretty good & inflation seems tame but my gut doesn't like the chart on the S&P, here, at 1250 and I still don't like financials.

Italian German Spread

The Monti honeymoon is over. Italy 10 - Germany 10 Spread is up over 6% today and above 5 again. PPI numbers were OK today so I'm waffling on staying short or going shorter; a terrible position to be in.

Chart: Spread between German and Italian 10 Year Bonds

I'm still negatively biased so I'm thankful for Joe Corzine, MF Global and this chart thanks to Joe Weisenthanl @TheStalwart.