Trading Plan for July 14, 2010
Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), SPY (109.07), WTFC (37.71), SLAB (44.80), CERN (83.56), ALB (43.59), HIBB (26.65)
BIAS: 81% Short
Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Import and Export Prices (8:30am), Business Inventories (10am), EIA Petroleum Status Report (10:30am), FOMC Minutes (2pm)
My Observations and What to Expect:
Futures are higher after blowout earnings from Intel (INTC), but well off their highs and continue to trade lower as the morning progresses.
Despite yesterday's heavy buying, my projections on this market still remain that it will move much lower in the near future.
Volume was higher than previous days, but still below average and less than previous big down days.
Market will always try to make you squeamish in your positions, even when you are on the right side of the market - it takes joy in sowing seeds of doubt.
If the market opens flat or in the red, could be a prelude to a significant market reversal taking place.
Retail report at 8:30am, should have a significant impact on the market today.
Heavy selling at end of day yesterday is a strong bearish development. Rally is a shorting opportunity until it proves it can break the high from 6/21.
Actions I Will Be Taking: