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Trading Plan for July 30, 2010

July 30, 2010 – Comments (0)

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.