Trading Plan for September 7, 2011

Current Long Positions (stop-losses in parentheses): QCOM Oct 60 Calls, AAPL Sept 420 Calls

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

BIAS: <1% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), Beige Book (2pm), Treasury STRIPS (3pm)

My Observations and What to Expect:

• Futures are about 1% higher heading into the open. 
• Asian markets saw gains of about 1.9%, and Europe is currently up well over 2% on average. 
• Markets higher mainly due to Italy and Greece austerity plans 
• Nice hammer candle on the S&P yesterday and bounce off of the short-term trend-line from the 8/9 lows. 
• S&P is trading in a well defined channel off of the 8/9 lows as well. However, it leads me to believe it is more of a bearish flag pattern than anything else. 
• The rally could take us back up as high as 1240’s before seeing the downward trend resume itself. 
• The 20-day MA is in play today as well as the 10-day. Notice the first bullish MA crossover in months occurring between the 10 and 20 MA’s. 
• Volume was noticeably higher yesterday, compared to the previous two days, but overall was average. 
• My Conclusion: Watch the first hour of trading, and for whether the bears pounce on this rally. If not, then it is a good indication that today’s gains will hold. 

Here Are The Actions I’m Taking:

• I’ll be looking to play some over sold bounce plays and a few breakouts as well. 
• Won’t be tempted to hold large positions overnight in the equities. 
• Will be looking for some short-term option plays. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

Join the SharePlanner Trading Network for Free – and be a part of the only Real-Time Trading Network.