Trading Plan for July 22, 2011
Current Long Positions (stop-losses in parentheses): SPY August 136 Calls, AIS (2.36), ES (5.04), GTXI (4.62)
Current Short Positions (stop-losses in parentheses): None
BIAS: 21% Long
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
Futures are mixed heading into the open.
Asia traded about 1.4% higher, and Europe about 0.6% higher.
Market is in good position to test 1356 (7/7 highs) today or early next week and the potential to test the 1370 representing the 5/2 recovery highs.
Break of 1356 on the S&P would nullify the head and shoulders pattern that has been developing over the course of this entire year.
The two large moves this week, puts us slightly into overbought territory on the S&P.
1302 on the S&P represents a rising support trend-line for the markets off of the June lows. It would also put in a new lower-low in the process.
Volume was slightly higher, than what we've seen of late.
My Conclusion: The kind of rallying that we've seen over the last 3 days, would lead me to believe that we'll see continued bullishness in the market today as well.
Here Are The Actions I Will Be Taking: