Trading Plan for August 16, 2010
Current Long Positions (stop-losses in parentheses): XLF (14.02), V (68.99), ENZN (10.15), TICC (8.42)
Current Short Positions (stop-losses in parentheses): SPY (113.30), DGX (50.09)
BIAS: 37% Short
Economic Reports Due Out (Times are EST): Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Housing Market Index (10am)
My Observations and What to Expect:
Futures have been all over the place throughout the night. Currently they are down moderately.
Housing Market Index will be the biggest report due out today.
The NYSE Reversal Indicator lines up well with the S&P 1130 rejection point, indicating more downside is in the cards.
With that said, I'm not surprised by anything this market does at this point. It has been all over the map this year.
No major news reports this week (i.e. Fed, Employment or GDP).
Some indicators put the market already in oversold territory already. Three down days though is a bit premature to be saying as much.
Next three significant support levels to watch on the S&P are 1056, 1040, and 1010.
Actions I Will Be Taking: