Trading Plan for June 27, 2011

Current Long Positions (stop-losses in parentheses): SPY July 129 Calls, AAPL July 330 Calls, MHLD (7.04), KKD (8.65), 

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

BIAS: 13% Long

Economic Reports Due Out (Times are EST): Personal Income and Outlays (8:30am)

My Observations and What to Expect:

• Futures are slightly higher heading into the open. 
• Asia saw losses range from -0.6% down to -1%. Europe is mixed and flat. 
• Friday continued to pile on the losses from the day prior, extending the S&P losing streak to 3 straight days. The S&P is also down 7 out of the last 8 weeks of trading. 
• The S&P on Friday showed an enormous amount of volume on Friday – typically we’ve only seen these kinds of volume levels on options expiration of late. Often times a large sudden volume spike can represent exhaustion in an existing trend. 
• We are, yet again, about 4 points from test the 200-day moving average on the S&P again. If tested, expect the buyers to once again try and jump in and hold that level. 
• Some of my more short-term to intermediate market indicators are showing that the market is setting up for a nice upside bounce in the days/weeks ahead.

• This week, a move above 1296, and ultimately 1300 for the bulls would dampen the bears prospects for a significant move downward, and put in a ‘higher-high’ for the market. 
• Greece will continue to be at the forefront of the news cycle, and will continue to affect market direction as well. 
• My conclusion: Friday’s move was quite surprising in my opinion, and am waiting to see whether the market  can break the 200-day MA to the downside, or break 1300 to the upside. 

Here Are The Actions I Will Be Taking:

• Held KKD and MHLD over the weekend. 
• Sold CLUB on afternoon weakness (day-trade) at 7.09 for a 1% gain. 
• SPY and AAPL calls of mine took a beating on Friday. A push below the 200-day on SPY would force me to close SPY calls.
• 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).