Trading Plan for October 12, 2010
Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.26), CVX (81.94), ITW (47.17), SSO (40.07), QQQQ (48.90), URS (37.82), TIE (19.52), BEAV (30.90), PAG (12.62), DTV (41.09)
Current Short Positions (stop-losses in parentheses): None
BIAS: 95% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), FOMC Minutes (2pm)
My Observations and What to Expect:
Futures are trading moderately lower, but has rallied off of its overnight lows.
Asian markets lower (Nikkei down 2%), European markets down as well.
Overnight futures have been very volatile, marked by wild swings.
China is reportedly forcing banks to hold more reserves and slow lending - which is causing the unexpected selling in the markets.
Not a major hurdle for the market to overcome, but will weight heavily on the market today.
FOMC Minutes could play a major role at 2pm today.
The trendline from 8/31 onward remains intact.
Best case scenario for the bears today is to push the market back below 1150. They can't afford to allow the bulls to rally off of intraday lows - will continue to only embolden the dip-buyers.
Best case scenario for the bulls today is to recover from the overnight selling, and finish in or near positive territory.
Here Are The Actions I Will Be Taking: