Stocks for Nov 21st: VXX, ERX, FAZ, TZA, NTAP, CRM

The super committee failure isn't going to impact stock market till Nov 28th. The reason is simple, if the market sell off drastically, then the feel good factor is gone, and less people might be shopping during thanksgiving holiday and that will be bad news for the stock market.

Last 10 year data suggest that the stocks market has always been higher before thanksgiving holiday just for that feel good factor followed by sell off following week before rallying again.

US is also thinking of imposing sanction on Iran, then Egypt unrest is likely to affect Oil prices. I think the oil prices is likely to rise after thanksgiving, till then ERY is a hot buy. So on any pullback on ERX is a buying opportunity.

Tomorrow Existing home sale is coming out at 10 EST, 4.80 M or higher is bullish sign, while less then 4.75 M is bearish sign.

Also checkout this article  http://www.freefdawatchlist.com/2011/11/stocks-impacted-by-super-committee.html

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Trading Ideas:

• Stock market is likely to open low, which means TZA, VXX, FAZ, ERY will be opening higher, TNA, FAS and ERX will open lower.
• Stocks announcing earning before the market opens are: CIS, VAL, TSN.
• Stocks announcing earning after the market closes are: HPQ, ADI, BRCD, TSL. HPQ can be shorted or buy put option in the morning.
• S&P500 has big resistance at 1200, and DJI has big resistance at 11700. If it breaks and hold below this level will be clear sign of bearish market.

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