Trading Plan For Sept. 8, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.64)
Current Short Positions (stop-losses in parentheses): None
BIAS: 3% Long
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect:
Futures are currently break-even.
No major news events scheduled for today.
Bulls failed to push through the upper-line of the downward channel.
We are basically stuck in a trendless market.
Wedge forming on the S&P where a breakout/breakdown would signify a major shift in market sentiment.
Difficult to take yesterday's sell-off serious considering the light holiday volume and the overbought nature of the market.
Some significant resistance levels overhead for the bulls: 200-day moving average at 1,115. The infamous 1,130 level is the most significant price level for the bulls to break through.
The 1,104 price level will be what I am watching today.
Bears need to aim for the 1,080/50-day moving average, and ultimately breaking the ultra-stubborn 1,040 price level.
Actions I Will Be Taking: