Trading Plan for August 24, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.51), EUO - UltraShort Euro (22.25)
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), ADBE (29.78)
BIAS: 67% Short
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Existing Home Sales (10am)
My Observations and What to Expect:
Futures are down strong - about 1%.
Existing Home Sales will impact the market at 10am.
We are going to see a test of the 1056 Support level on S&P.
Morning action nullifies the bullish wedge we saw forming in the short term on the S&P chart. In-line with what I had expected (see yesterday's Market Wrap-Up).
If we break through 1056 on the S&P watch for an eventual test at 1010.
Be aware though that it is not uncommon, and it has happened a lot of times recently where the markets sells off hard in the morning, only to rally back in the afternoon. Be prepared.
Price action is in line with late day selling yesterday.
Actions I Will Be Taking: