Trading Plan for July 8, 2011
Current Long Positions (stop-losses in parentheses): BWS (10.61), CLSN (3.37), CHTP (5.18)
Current Short Positions (stop-losses in parentheses): STNG (10.39)
BIAS: 18% Long
Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Wholesale Trade (10am), Consumer Credit (3pm)
My Observations and What to Expect:
Futures are down very strong as much as 20 points right now.
Asia was up on average about 0.6% while Europe is down between -0.8% and -1.5%
Bad Unemployment report (huge miss) is dragging the market from flat to as much as -20 points down going into the open.
For the bulls today, they need to do everything they can to hold 1334 and ultimately 1330 on the S&P.
With the weakness that we are seeing today, we'll need a much more dramatic pullback before there is any damage done to the technical picture of the S&P.
S&P managed to break through 1345 yesterday, which only leaves 1370 as the last remaining resistance barrier between current price and new recovery highs.
Volume has been light this week, and last week.
Shortened holiday weeks can often prove to be a challenge when it comes to trading.
My Conclusion: Huge weakness to begin the day, but I am ultimately watching to see whether the bulls can hold their early morning lows and try and buy up this sell-off.
Here Are The Actions I Will Be Taking (Chart too):