Trading Plan for June 3, 2011
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): Employment Situation (8:30am), ISM Non-Manufacturing Index (8:30am)
My Observations and What to Expect:
Futures are down strong heading into the open due to the huge miss in the Employment report.
Asia was down about 1% on average while, Europe sees its losses around 0.75%.
For the first time since April, the S&P will be trading under 1300.
Should 1294 break, we could see the market hit 1250 in the coming weeks. There is little support under 1294 and would represent a lower-low.
We will also breaking down below the descending channel, which could cause more problems for the bulls today (below 1299)
My conclusion: At this point, you don't want to be adding new long positions until the market decides to shed the bearish tones it is exhibiting. Raise cash at will. Also shorting at these extreme levels carries a high level of risk too.
Here Are The Actions I Will Be Taking: