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Trading Plan for June 30, 2011

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June 30, 2011 – Comments (0) | RELATED TICKERS: SPY , HDY , STNG

 

Current Long Positions (stop-losses in parentheses): HDY (4.12)

Current Short Positions (stop-losses in parentheses): STNG (10.39)

BIAS: Neutral

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Bloomberg Consumer Comfort Index (9:45am), Chicago PMI (9:45am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

Futures are slightly higher heading into the open. 

 

Asia finished with gains ranging from 0.2% up to 1.5%, while Europe is overall, slightly green. 

S&P is attempting to put together its fourth consecutive day of gains.

Watch the 50-day moving average at 1317 for resistance, and more so the descending upper channel line, which will provide heavy resistance at 1320. 

Today we'll see the 10-day cross the 20-day moving average to the upside, which is a good sign the technical damage on the S&P is slowly getting repaired. 

I would be careful about piling into a lot of long positions here in the short-term, as the bears will at some point try to initiate new short positions in hopes of resuming the downward trend, and with a 40-point rally in the S&P in the last three days off of the lows, we are likely due for at least some pullback/consolidation.

Watch for some unpredictable price action with it being quarter/month end today. 

We managed to create a 'higher-high' on the S&P yesterday helped to effectively end the downward trend that began on 5/2. 

Nasdaq formed a shooting star pattern yesterday, which could be ominous of some exhaustion by the bulls in the short-term. 

NYSE Reversal Indicator shows us that a rally over the next couple of weeks is likely.

My conclusion: Bullish on an extended move going forward, but wouldn't be surprised to see some profit taking or  a pullback over the next couple of days. 

Here Are The Actions I Will Be Taking

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