Trading Plan for June 23, 2011

Current Long Positions (stop-losses in parentheses): SPY July 130 Calls, AAPL July 330 Calls, MHLD (7.04), KKD (8.65), GNVC (2.98)

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

BIAS: 16% Long

Economic Reports Due Out (Times are EST): Jobless Claims (8:30am), Chicago Fed National Activity Index (8:30am), Bloomberg Consumer Comfort Index (9:45am), New Home Sales (10am), EIA Natural Gas Report (10:30am)

My Observations and What to Expect:

• Futures are down hard going into the open – looking at 1% gap down. 
• Asia was down about 0.4%, while Europe is down on average about 1.5%
• Once again, Ben Bernanke opened his mouth, and stocks went through the floor, with today doing more of the same. 
• We found resistance once again at the 20-day moving average on the S&P. 
• We are also prime to open below the 10-day moving average as well. 
• With the weakness we are experiencing in the pre-market, we could see a challenge of the 200-day MA today at 1262.

• Volume has been pretty wak of late – will be interested in seeing what kind of volume today’s selling brings in. 
• A break below 1257 or the 200-day moving average would be disastrous for the markets.
• My conclusion: I’m bracing myself for a pretty rough day in the market for the bulls. 

Here Are The Actions I Will Be Taking:

• Sold the SPY July 130 Calls yesterday at $1.77 for a 60% gain. 
• Held MHLD, GNVC, and KKD overnight. 
• 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).