Trading Plan for August 23, 2011
Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls, SPY Sept 124 Calls
Current Short Positions (stop-losses in parentheses): None
BIAS: 7% Long
Economic Reports Due Out (Times are EST): Goldman Store Sales (7:45am), Redbook (8:55am), New Home Sales (10am)
My Observations and What to Expect:
Futures slightly higher at the open, has lost 60% of its gains from overnight trading.
Asian markets were up about 1.3%, while Europe is trading about 0.8% higher.
Yesterday marked another trading session, where the market was unable to hold any of its gains and saw most of them quickly evaporate at the open.
Bears continue to short, in a very aggressive manner any notable strength in the markets.
Once again 1120 held on the charts which is quickly becoming what S&P 1040 was for bears last summer. Potential double bottom could be formed here, if 1120 holds.
Short-term goal for bulls should be to break the 10-day moving average at 1162.
Gold has sold off considerably after reaching overnight highs at $1,917 last night.
S&P 3 points off of significant closing lows at 1120. Break it and we head for the 1101 market. After that you could see 1040.
Be careful about remaining too heavy to the short side this week. We could begin seeing some positive catalysts come out of Europe, in the way of political intervention, not to mention you have Bernanke and the Jackson Hole speech on Friday.
My Conclusion: It's all about 1120 - hold it, and it should provide the floor to a nice bounce higher. Don't....and well...get out of the way.
Here Are The Actions I'm Taking: