Trading Plan for August 6, 2010
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: 42% Long
Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Consumer Credit (3pm)
My Observations and What to Expect:
Futures slightly higher.
Employment will weigh heavily on the market today. Futures likely to do little until then.
Last employment report saw some pretty wild swings after the release, only to finish lower on the day.
Price action looks poised to break through the critical 1130 level. Should be no problem with a good employment report.
If we break through 1130, I think we'll see a nasty short-squeeze as a result of a lot of stops being placed just above that price level.
Impressed with the consolidation just above the 200-day moving average recently.
Don't be fooled by initial market reaction to the employment report - not always indicative of how the day will go.
Dip buyers are buying up anything that sells.
Employment might be the last great hope of the bears to push this market lower for the year. If the bulls push above 1130, I think the bears are done for the year.
Actions I Will Be Taking: