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Trading Plan for October 7, 2010

October 07, 2010 – Comments (0) | RELATED TICKERS: SPY , QQQ

Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (13.92), CVX (80.67), DAL (11.12), ELY (6.78), ITW (46.40), SSO (38.70), QQQQ (48.19), FRG (6.99), URS (37.12), TIE (19.52), BEAV (29.54)

Current Short Positions (stop-losses in parentheses): None

BIAS: 76% Long

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), Consumer Credit (3pm)

My Observations and What to Expect:

Futures are slightly positive (again)

Jobless Claims could have a big impact to the system, though often times of late, we get big swings initially, but ultimately wind up where we were to begin with.

I count it positive that the bulls managed to hold on to Tuesday's large gains. 

Nasdaq was a lag on the market, due to some big sell-offs like EQIX, NFLX, CRM, and BIDU - the latter three of which saw parabolic increases in their share prices this year. 

Tech leaders like Apple (AAPL) and Microsoft (MSFT) both saw increases yesterday, which helps to alleviate my concern in the Nasdaq yesterday. 

It is important for the bulls to continue holding the 1150 level on the S&P and ultimately advance well beyond 1160 level. 

Asian and European markets are flat.

The S&P has bounced nicely off of its Monday pullback (higher-low) 

The main objective for the bears is two fold - 1) Close below yesterday's lows, and 2) Ultimately close below Tuesday's lows. 

There is a minor resistance level at 1174, which is the only real road block between it and testing the April highs.

While the S&P has broken out of consolidation, the Nasdaq is still stuck in it. 

Here Are The Actions I Will Be Taking: