Trading Plan for August 30, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.51)
Current Short Positions (stop-losses in parentheses): SPY (108.68), DGX (47.10), FCN (35.01), URBN (32.73), OMI (27.76), ADBE (29.78), DDS (22.78)
BIAS: 52% Short
Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am)
My Observations and What to Expect:
Futures are just slightly positive, despite being up almost 1% early on. Continuous selling since.
Big Report this week will be the employment number on Friday.
Worst case for the bulls today, would be if they gave up Friday's gains. Would inevitably lead to much more selling in the days ahead.
Worst near-term scenario for the bears if they give up 1100 on the S&P. Hardly likely to happen today though.
Closest Resistance level is at 1067. Should be difficult for the bulls to close above it.
50-day moving average is an additional resistance level for the bulls as well.
Personal Income and Outlays report this morning should have a moderate impact on the markets early on.
Actions I Will Be Taking: