Trading Plan for Sept. 24, 2010
Current Long Positions (stop-losses in parentheses): TICC (9.04), BRKR (12.95)
Current Short Positions (stop-losses in parentheses): LMT (76.35)
BIAS: 3% Long
Economic Reports Due Out (Times are EST): Durable Goods Orders (8:30am), New Home Sales (10am)
My Observations and What to Expect:
Futures are slightly positive
S&P left the door open to further declines in the days ahead, with yesterday's bearish close.
Break in the neckline on the inverted head and shoulders pattern, shouldn't be a huge concern for the bulls - only if upon a bounce in price, it struggles to reclaim that critical price level.
Market is no longer overbought.
Next level to test for the bears is 1116 on the S&P, which represents the 200-day moving average.
38% Fib retracement on the S&P is at 1107. 50% is at 1094. Right now we are at the 23% retracement.
The main goal for the bulls is to re-gather its footing, and push above the previous highs at 1148.
Here Are The Actions I Will Be Taking: