Trading Plan for August 11, 2010
Current Long Positions (stop-losses in parentheses): XLF (14.02), V (68.99), ENZN (10.15), QQQQ (44.79), CSR (5.24)
Current Short Positions (stop-losses in parentheses): None
BIAS: 44% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Productivity and Costs (8:30am), Redbook (8:55am), Wholesale Trade (10am), EIA Petroleum Status (10:30am), Treasury Budget (2pm)
My Observations and What to Expect:
Futures down well over 1%
Europe and China both down significantly.
Ideally it would have been much better for the bulls to have broken the 1131 mark before selling off.
Not uncommon to fail the first test of resistance, however today's selling, if it holds, could re-establish bearish beliefs again, since the right shoulder (1131 mark) isn't yet broken.
Some damage being done to the charts: Worth noting that Bearish wedge detailed in previous video web-cast I did, will be broken, upward trend-line broken, but no lower-low as of yet.
Key support levels to watch: Friday low (1107 on S&P), Break of previous higher-low (1088 on July 30th).
Can the bulls dip-buy once again?
Actions I Will Be Taking: