Trading Plan for July 8, 2010
Current Long Positions (stop-losses in parentheses): QQQQ (Hedge)
Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), SPY (109.07)
Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am), Consumer Credit (3pm), Fed Balance Sheet (4:30pm), Money Supply (4:30pm)
My Observations and What to Expect:
Futures are currently trading flat.
Yesterday's rally was marked by a pathetic volume showing, further clarifying the rally as nothing more than a dead cat bounce.
Futures overnight have been trading within a tight 7 point range on the S&P e-mini's. Today's outcome at this point is a wild guess.
We are still oversold, but are quickly coming off those conditions with yesterday's rally. A little follow through would further help the cause.
At this point, with us treading slightly in the negative, a gap of 2 or 3 points can easily be filled.
Jobs Report could rock the markets either way. If the number exceeds expectations, we could experience the last gasp of the bulls before this market starts selling-off again.
Be on the lookout for the European problems to begin resurfacing in the news - It'll be interesting how much of a a role it takes in the markets as most people will be focused on earnings for inspiration.
Here Are The Actions I Will Be Taking: