Trading Plan for August 23, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.51), QQQQ (Hedge)
Current Short Positions (stop-losses in parentheses): SPY (113.30), DGX (50.09), FCN (36.75), URBN (34.91), OMI (29.31), HSY (49.93)
BIAS: 0% Neutral (52% Short w/o QQQQ)
Economic Reports Due Out (Times are EST): No reports due out.
My Observations and What to Expect:
Futures are up moderately.
Looks like another Monday morning ramp job. They are becoming quite popular these days. Six out of the last six Mondays have finished in positive territory. Going for 7-for-7 today.
I expect the 50-day moving average at 1089 on the S&P to act as resistance today.
Any potential rally today will likely fall short of breaking the 50-day moving average. If they do break it, then 1092 will serve as the next level of resistance (Thursday's Highs).
Nice short-term downward trend-line connecting lows of 7/30, 8/16 & 8/20
Last Monday's lows were broken on an intraday basis, but still needs to close below them.
Actions I Will Be Taking: