Trading Plan for July 30, 2010
Current Long Positions (stop-losses in parentheses): None
Current Short Positions (stop-losses in parentheses): None
BIAS: 100% CASH
Economic Reports Due Out (Times are EST): GDP (8:30am), Employment Cost Index (8:30am), Chicago PMI (9:45), Consumer Sentiment (9:55am), Farm Prices (3pm).
My Observations and What to Expect:
Futures moderately lower ahead of GDP
1089 on S&P Futures and 1084 on S&P Index are key price levels to be watching, and whether the bulls can hold them.
GDP report comes out at 8:30 which could easily wipe out the losses the futures are seeing currently, and don't be surprised if market rallies despite a bad reading.
Consumer Sentiment could also throw a wrench into things at 9:55.
200-day moving average still looms overhead. A rally through it would further validate the bull's cause.
1089 on the S&P would make for a good entry for new long positions - important upward trend-line.
Watch XLF - very obvious inverted head and shoulders pattern forming. Actions I Will Be Taking: