Trading Plan for July 30, 2010

by Ryan Mallory

Current Long Positions (stop-losses in parentheses): None

Current Short Positions (stop-losses in parentheses): None

BIAS: 100% CASH

Economic Reports Due Out (Times are EST): GDP (8:30am), Employment Cost Index (8:30am), Chicago PMI (9:45), Consumer Sentiment (9:55am), Farm Prices (3pm).

My Observations and What to Expect:

• Futures moderately lower ahead of GDP
• 1089 on S&P Futures and 1084 on S&P Index are key price levels to be watching, and whether the bulls can hold them.
• GDP report comes out at 8:30 which could easily wipe out the losses the futures are seeing currently, and don't be surprised if market rallies despite a bad reading. 
• Consumer Sentiment could also throw a wrench into things at 9:55.
• 200-day moving average still looms overhead. A rally through it would further validate the bull's cause.
• 1089 on the S&P would make for a good entry for new long positions - important upward trend-line.
• Watch XLF - very obvious inverted head and shoulders pattern forming.

Actions I Will Be Taking:

• May look at adding 1 to 2 long positions in the portfolio.
• Will look to do some more scalping on the ultra ETF's today: TZA, TNA, SDS, and SSO.
• If little to no impact from GDP report, I will fade the open. 
• Will wait until at least 10am before trading anything else.