Trading Plan for August 16, 2011
Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls, Sept 124
Current Short Positions (stop-losses in parentheses): None
BIAS: 8% Long
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Existing Home Sales (10am), Philadelphia Fed Survey (10am), Leading Indicators (10am), EIA Natural Gas Report (10:30am)
My Observations and What to Expect:
Futures taking a major hit heading down into the open of about -30 point.
Asian markets were down on average about -1.25%, while European markets are getting crushed to the tune of about -3.5%.
We are poised to open up around 1160, which would break short-term support at 1172 and put us back in to consolidated range from last week.
We failed for the 3rd consecutive day to break above the underside of the trend-line of that began back in July '09.
Expect today's strong move down to be accompanied with increased volatility and volume.
Though it is a long ways off, the bulls need to hold the 1120 level today, should stocks drop that far today.
My Conclusion: Good day for the bulls to just stand aside. For the bears, nothing wrong with trying to jump in on the short side, but be careful in doing so and keep the stops tight.
Here Are The Actions I'm Taking: