Trading Plan for August 4, 2010
Current Long Positions (stop-losses in parentheses): XLF (13.90), V (68.99)
Current Short Positions (stop-losses in parentheses): None
BIAS: 20% Long
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Treasury Refunding Announcement (9am), ISM Non-Manufacturing Index (10am), EIA Petroleum Status (10:30am)
My Observations and What to Expect:
Futures are down slightly, once again.
Upside momentum seems to come and go in spurts.
Bulls are on the leg of the rally that will likely test the 1130 zone on the S&P, which can happen any day now.
S&P tried to push below 200 yesterday. Bears failed which is a positive for the market.
My best guess right now (and it isn't always worth that much), that we rally into mid-terms and eventually challenge the April highs. Seems crazy to even think that is possible at this point.
Morning gap is looks very fade-able at the moment.
Actions I Will Be Taking: