Trading Plan for August 2, 2010
Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): None
BIAS: 100% CASH
Economic Reports Due Out (Times are EST): ISM Manufacturing Index (10am), Construction Spending (10am)
My Observations and What to Expect:
Futures are up very strong - over 1%.
European earnings pushing market higher - HSBC and BNP Paribas in particular.
As Europe goes, so does the U.S Markets.
Events in Europe, even those domestic to their own country have more weight than U.S. news apparently.
Be weary of trying to fade this gap up - Could run 20 or 30 points if this early morning strength is legit.
The Russell and Nasdaq are in strong confirmed bull rallies.
Weekly and Daily charts on S&P show two different markets. Weekly charts show a market still heading down (no new higher-highs), while the daily shows a market on the rebound.
S&P set to open at 200-day moving average on futures and index. Another challenge looms!
Busy week with lots of reports - main one: Employment on Friday.
Actions I Will Be Taking: