Trading Plan for July 19, 2010
Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (32.34), WTFC (37.71), SLAB (44.80), CERN (83.20), ALB (43.59), HIBB (26.65), WRC (40.95)
BIAS: 89% Short
Economic Reports Due Out (Times are EST): Housing Market Index (10am)
My Observations and What to Expect:
No major economic reports due out today that would single-handedly shift/influence market sentiment.
Futures up moderately prior to open.
With no news, morning bullishness is a fade-worthy trade on gap-up
Friday's sell-off engulfed six previous trading sessions = bearish
Still overbought on S&P and other indices.
Volume on Friday was higher than all previous 9 trading sessions.
Previous higher volume day occurred on key reversal day that occurred on 7/1/10
Series of previous lower-highs in place...perfectly.
If series of 9 day market reversal pattern remains intact, we could be on only day 2 of 9 selling days.
Earnings should be main market driver this week with big names reporting.
Actions I Will Be Taking: