Trading Plan for August 17, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.42)
Current Short Positions (stop-losses in parentheses): SPY (113.30), DGX (50.09), FCN (36.75)
BIAS: 45% Short
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Producer Price Index (8:30am), Redbook (8:55am), Industrial Production (9:15am)
My Observations and What to Expect:
Futures up moderately indicating a bounce may be in the cards today.
PPI, Housing Starts, and Industrial Production will add some drama to the markets prior to the open.
I expect futures to be markedly different, one way or the other when all the reports come out this morning.
First test for the bulls is whether they can reclaim the 50-day moving average on the S&P. Last three days, the bears have stopped them from doing so.
For the bears, expect a test at 1056 support level on the S&P.
A bounce today wouldn't be overly surprising .
Actions I Will Be Taking: