Trading Plan for Sept. 9, 2010
Current Long Positions (stop-losses in parentheses): TICC (8.64)
Current Short Positions (stop-losses in parentheses): SPY (113.30), DELL (13.26)
BIAS: 25% Short
Economic Reports Due Out (Times are EST): International Trade (8:30am), Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am)
My Observations and What to Expect:
Futures are slightly positive
Jobless Claims will be the main focus heading into the open, and should have a significant impact to market direction to day. Consensus is 470k.
1104 of the Downward trend-line will be today's key resistance level for the bulls to breakthrough. Last three days have been unsuccessful.
If the bears could hold the 1104 trend-line and then proceed to sell off even further and eventually break the 1040 level, it would spell disaster for the bulls - the downward trend-line would be working perfectly and according to plan.
Breaking through the 50-day moving average for the bears and 200 for the bulls are key near-term obstacles for both.
Except for July, and since April, the second half of each month has been much more conducive to seeing significant selling, than the first half.
Actions I Will Be Taking: