Trading Plan for June 20, 2011

Current Long Positions (stop-losses in parentheses): AGYS (7.60), CALP (7.28), SPY July 130 Calls

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

BIAS: 6% Long

Economic Reports Due Out (Times are EST): None

My Observations and What to Expect:

• Futures are down moderately heading into the open. 
• Asia was mixed in trading, while Europe was down on average about 1.1%. 
• European leaders remain split on their approach to handling Greece – no bailout at this point. 
• A perfect doji candle pattern was created in the market last week (S&P), showing indecision between both bulls and bears heading into the week ahead. Watch for a break of either last week’s highs or lows for determining market direction going forward.
• The 10-day moving average is acting as resistance for the S&P, failing to break above it 3 times over the course of the last four days. 
• Volume was strong, likely due in part to the quadruple-witching options expiration day. 
• Ideal for this week, would be a move that sees us close at some point, above 1293 on the S&P. That would likely lead to further upside in the market.

• A break below 1257 or the 200-day moving average would be disastrous for the markets. 
• FOMC Meeting this week begins on Tuesday with an announcement on Wednesday at 2:15 ET.
• We finished last week by snapping a 6-week losing streak by closing a whopping 0.52 points higher on the S&P for the week. 
• My conclusion: Indecision was represented in the market last week, and a deal on Greece is imminent, in my opinion, I believe that this week will lead to a bounce in equities. 

Here Are The Actions I Will Be Taking:

• Back in AGYS at 7.98. 
• Sold CALP for a 3.9% gain. 
• Will continue to day-trade the market with my focus being on small cap stocks.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).