Trading Plan for October 15, 2010

Current Long Positions (stop-losses in parentheses): TICC (9.62), BRKR (14.54), ITW (47.40), QQQQ (49.25), TIE (19.73), BEAV (31.75), PAG (13.62), DTV (41.09), ZION (21.59), ACI (25.54)

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

BIAS: 82% Long

Economic Reports Due Out (Times are EST): Bernanke (8:15am), Consumer Price Index (8:30am), Retail Sales (8:30am), Empire State Manufacturing Survey (8:30am), Consumer Sentiment (9:55am), Business Inventories (10am), Treasury Budget (2pm)

My Observations and What to Expect:

• Futures are mixed, with Nasdaq showing the most strength. 
• Google earnings is providing a huge boost to the Nasdaq – stock is up over 8% in after hours trading. 
• Volume over the past couple of days has been impressive. 
• S&P bounced nicely off of the current August-lows trend line. 
• Bernanke speaking prior to the market open – could give a boost. I don’t believe he’ll try to sabotage the markets – he usually tries to avoid that at all costs. Instead the emphasis will be QE2. 
• Nice pullback yesterday to the 10-day moving average, which has consistently represented support for the markets of late.
• Lots of reports due out this morning – CPI and Consumer Sentiment will be in focus. 
• Bears should aim to break through 1162 and then the 1156 level on the S&P.
• Dip buying crept back in the last hour of trading yesterday. 

Actions I Will Be Taking:

• Stopped out of ZION yesterday at the predefined stop-loss. .
• Added ACI to the portfolio near the close of trading. 
• Not hedged at all heading into the open. 
• Stop-loss changes made in BEAV and PAG. 
• Could add an additional position to the portfolio under the right circumstances. 
• I’ve become much tighter/aggressive with the stop-losses, and more willing to take profits once there is any hesitation in the stock itself.