Trading Plan for Sept. 30, 2010
Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (12.95), CVX (76.89), DAL (11.05), ELY (6.39), ITW (44.45), SSO (38.03), QQQQ (48.06), FRG (6.78)
Current Short Positions (stop-losses in parentheses): LMT (76.35)
BIAS: 76% Long
Economic Reports Due Out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Corporate Profits (8:30am), Chicago PMI (9:45am), Bernanke (10am), EIA Natural Gas Report (10:30am), Bernanke (2:30pm)
My Observations and What to Expect:
Futures are slightly down ahead of the open.
1150 on the S&P is quickly becoming the mortal enemy of the bulls.
Both Asian and European markets are trading in the red today.
The rising channel that the bulls are currently trading in is a bit concerning, considering the fact that the bulls are at the top of the range right now. Needs to break through this resistance level.
On an intraday basis we are stuck in a range between 1140 and 1150.
Will see "Window-Dressing" today as we end the third quarter.
Last 5 quarter-end days have resulted in negative returns. Last positive day was March '09.
Only 1 of the past 4 quarter-end weeks have had positive returns (3 out of 6 dating back to January '09)
A solid GDP and Jobs report this morning could push this market upward to 1170.
A weak GDP/Jobs report could push this market in to the 1120's.
Bears need to push this market below 1131 and ultimately 1122.
Price action very similar to what we saw from 9/13 through 9/17.
Here Are The Actions That I will Be Taking