Trading Plan for August 3, 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): ICSC-Goldman Store Sales (7:45am), Personal Income and Outlays (8:30am), Redbook (8:55am), Factory Orders (10am), Pending Home Sales Index (10am).
My Observations and What to Expect:
Futures are slightly lower.
Broke through the all-important 200-day moving average with decisiveness.
Next barrier is the 1136 on the S&P. Break would end the bear head and shoulders argument.
If the bears want to keep from losing full control of this market, it has to start pushing the markets lower now. "Put-up or Shut-up" time for the bears.
Market has acted very similar to the bear trap of January and February.
Bulls must show that it can 1) hold yesterday's gains 2) Hold 200-day moving average.
Personal Outlays and Income along Pending Home Sales reports will be influencing the market in the AM.
Actions I Will Be Taking: