Trading Plan for Sept. 21, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.94)
Current Short Positions (stop-losses in parentheses): None
BIAS: 3% Long
Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am), FOMC Statement (2:15am)
My Observations and What to Expect:
Futures are at break-even with a slight negative tilt.
1130 level on the S&P was broken yesterday, which confirmed the inverse head and shoulders pattern.
Very little resistance keeping the S&P from reaching 1219 (April's highs).
There is some minor resistance (and very minor) at 1173
As I've been saying, the market is overbought in every sense of the word.
The bear argument is pretty much dead for the time being unless yesterday's rally was just a head-fake, but the odds of that is pretty low, in my opinion.
FOMC Statement today will add a lot of volatility, especially in regards to expectations regarding QE2. I'll be posting the statement here for you to see, almost immediately.
Here Are The Actions I Will Be Taking: