Trading Plan for August 25, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.51), EUO - UltraShort Euro (22.25)
Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (47.10), FCN (35.01), URBN (33.94), OMI (27.76), HSY (48.02), ADBE (29.78)
BIAS: 63% Short
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), New Home Sales (10am), FHFA House Price Index (10am), EIA Petroleum Status Report (10:30am)
My Observations and What to Expect:
Futures are slightly down.
New Home Sales will have a significant impact on the market today. Especially after yesterdays Existing Home Sales report was so dismal.
Durable Goods should also be closely watched.
S&P broke and closed below critical 1056 support level on the S&P.
Any near-term bounce in the S&P will likely struggle to go higher than 1100, and 1070 realistically.
Support levels for bears to break on S&P is 1040 (Neckline of Head and Shoulders pattern), and 1010 (July lows).
Actions I Will Be Taking: