12:40pm (EST)

The market opened lower but the losses were held in check as we have bounced off the lows of the day.  The bulls seem to be putting together this week’s game plan while the remaining bears will try to counter-attack a move forward.  With the major indexes near two-year highs, the bulls have made a strong statement on their staying power while the bears seem more focused on hibernating for a few months. 

Fighting the Fed has turned out to be a losing battle and with them pumping up to $75 billion a month into the market, the bears know it will be an uphill battle.  However, leaders from the Group of 20 will meet Thursday and Friday in Seoul as officials from several countries have criticized the Fed’s bond-buying program amid concerns that it will spark asset bubbles in emerging economies so stay tuned.

The dollar fell 1% last week and is seeing a little strength today with commodities being mixed.  Gold was down $2 to $1,396 an ounce but is now up $7 to $1,405 while silver has up 3 cents to $27.02.  Platinum is down $4 to $1,765 while Palladium is up $22 to $708.  Copper is slightly higher at $3.96.

The retail sector will take center stage this week and Wall Street will get a better indication of consumer spending as several major retailers announce earnings.  Fossil (FOSL, $63.58, up $1.36), J.C. Penny (JCP, $33.20, up $0.61), Kohl’s (KSS, $53.02, down $0.28), Macy’s (M, $25.30, down $0.27) and Polo Ralph Lauren (RL, $99.72, up $0.10) will release earnings starting Tuesday.  The sector is looking for a pop after better-than-expected October sales that suggested consumers will increase their spending for the holiday season.

Out of the group, we dig Fossil the most as we think they are one of the best run retailers out there.  The company has a nice mix of merchandise and they keep inventories lean, clean and well managed.


As we head to press, the Dow is down 39 points to 11,405 while the S&P is lower by 3 points to 1,222.  The Nasdaq is up by 2 points and is showing strength as it is currently trading at 2,581.

We have 3 NEW TRADES for today.  Two are new positions and the other trade is a “rollover” from a current position we already have open that is showing a nice profit.  We have also just released the video from last night for those of you who have purchased our option trading course.  Subscribers, check for the important updates inside the Members Area or your email inbox for the specifics.

We will be back Tuesday morning at 9am with our next market update.