Trading Plan for July 8, 2011

Current Long Positions (stop-losses in parentheses): BWS (10.61), CLSN (3.37), CHTP (5.18)

Current Short Positions (stop-losses in parentheses): STNG (10.39)

BIAS: 18% Long

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), Wholesale Trade (10am), Consumer Credit (3pm)

My Observations and What to Expect:

• Futures are down very strong as much as 20 points right now. 
• Asia was up on average about 0.6% while Europe is down between -0.8% and -1.5%
• Bad Unemployment report (huge miss) is dragging the market from flat to as much as -20 points down going into the open. 
• For the bulls today, they need to do everything they can to hold 1334 and ultimately 1330 on the S&P.
• With the weakness that we are seeing today, we’ll need a much more dramatic pullback before there is any damage done to the technical picture of the S&P. 
• S&P managed to break through 1345 yesterday, which only leaves 1370 as the last remaining resistance barrier between current price and new recovery highs. 
• Volume has been light this week, and last week.
• Shortened holiday weeks can often prove to be a challenge when it comes to trading.
• My Conclusion: Huge weakness to begin the day, but I am ultimately watching to see whether the bulls can hold their early morning lows and try and buy up this sell-off. 

Here Are The Actions I Will Be Taking:

• Will continue to day-trade the market with my focus being on small-cap stocks.
• Closed out my position in ACHN yesterday for a 2.5% gain. 
• Added BWS at $11.00, CHTP at $5.39, CLSN at $3.49
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).