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Trading Plan for August 5, 2010

August 05, 2010 – Comments (0)

Current Long Positions (stop-losses in parentheses): XLF (14.02), V (68.99), INTC (19.75)

Current Short Positions (stop-losses in parentheses): None

BIAS: 32% Long

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), Treasury STRIPS (3pm).

My Observations and What to Expect:

Futures up slightly.

Jobless claims will set the tone. Employment # tomorrow will really shake things up.

Bears had 2 great opportunities to push this market much lower this year and failed both times. I don't see another opportunity like that happening again this year.

Earnings season is wrapping up and it can be concluded as being a surprising positive for the markets.

S&P holding the 200-day moving average incredibly well. 1131 on the S&P is in play today as well. We break that, I think we rally big-time.

With the state of the US economy the way it is, I still believe there is a day of reckoning for the bulls. They just haven't quite embraced it yet (nor has the bears apparently!).

I think right now the charts are looking as good as they have all year for buying (can't believe I am saying that). That isn't necessarily a sure thing, but I do believe the odds are strongly in the bulls favor right now.

Not overly worried about the employment number tomorrow. They keep finding ways to not make it look "too-bad" up to this point, why should we expect any different from the Feds.

Actions I Will Be Taking: