Trading Plan for July 22, 2011

Current Long Positions (stop-losses in parentheses): SPY August 136 Calls, SD (10.72), GMO (4.39), LIOX (3.10), OPWV (2.38), YSI (10.75), AIS (2.36), ES (5.04), GTXI (4.62)

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

BIAS: 21% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

• Futures are mixed heading into the open. 
• Asia traded about 1.4% higher, and Europe about 0.6% higher. 
• Market is in good position to test 1356 (7/7 highs) today or early next week and the potential to test the 1370 representing the 5/2 recovery highs. 
• Break of 1356 on the S&P would nullify the head and shoulders pattern that has been developing over the course of this entire year. 
• The two large moves this week, puts us slightly into overbought territory on the S&P. 
• 1302 on the S&P represents a rising support trend-line for the markets off of the June lows. It would also put in a new lower-low in the process. 
• Volume was slightly higher, than what we’ve seen of late. 
• My Conclusion: The kind of rallying that we’ve seen over the last 3 days, would lead me to believe that we’ll see continued bullishness in the market today as well. 

Here Are The Actions I Will Be Taking:

• Sold YSI yesterday for a 1.6% gain, BEBBE at $7.72 for a 0.9% loss, NEWN at $3.85 for a 1% loss, OPWV at $2.50 for a 0.8% gain.
• Bought AIS at $2.47, ES at $5.24, GTXI at $4.83. 
• Continue to hold SPY August 136 Calls but 90% certain that I’ll be selling my calls at some point today. I am currently up about 139% in the position. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).