Trading Plan for July 16, 2010
Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (32.80), WTFC (37.71), SLAB (44.80), CERN (83.56), ALB (43.59), HIBB (26.65), LYV (11.95) - covered yesterday, WRC (40.95)
BIAS: 93% Short
Economic Reports Due Out (Times are EST): Consumer Price Index (8:30am), Treasury International Capital (9am), Consumer Sentiment (9:55am)
My Observations and What to Expect:
Futures up slightly - been vacillating between positive and negative territory.
Four major news pieces hit late yesterday: 1) Google profit misses 2) Goldman Settles with SEC 3) BP caps oil leak 4) Financial Reform passes. Futures reaction is muted to all of these.CPI and Consumer Sentiment will provide further direction for the markets today.
Reversals in markets of late have occurred in 9 day intervals - today marks day #9.
Two days of straight doji's could be a problem for bulls, much like it was a few weeks ago when we got three doji's in a row before selling off immediately thereafter.
Yesterday's rally in to the close erasing significant losses could re-inspire bulls to push this market even higher.
Market is on uncertain grounds - control is up in the air.
Actions I Will Be Taking: