Trading Plan for Sept. 9, 2010

Current Long Positions (stop-losses in parentheses): TICC (8.64)

Current Short Positions (stop-losses in parentheses): SPY (113.30), DELL (13.26)

BIAS: 25% Short

Economic Reports Due Out (Times are EST): International Trade (8:30am), Jobless Claims (8:30am), EIA Natural Gas Report (10:30am), EIA Petroleum Status Report (11am)

My Observations and What to Expect:

• Futures are slightly positive
• Jobless Claims will be the main focus heading into the open, and should have a significant impact to market direction to day. Consensus is 470k.
• 1104 of the Downward trend-line will be today’s key resistance level for the bulls to breakthrough. Last three days have been unsuccessful. 
• If the bears could hold the 1104 trend-line and then proceed to sell off even further and eventually break the 1040 level, it would spell disaster for the bulls – the downward trend-line would be working perfectly and according to plan.
• Breaking through the 50-day moving average for the bears and 200 for the bulls are key near-term obstacles for both. 
• Except for July, and since April, the second half of each month has been much more conducive to seeing significant selling, than the first half.

Actions I Will Be Taking:

• Added two new additional short positions to the portfolio yesterday: SPY and DELL.
• Should the market sell-off today and not break the downward trend-line, I’ll be inclined to add maybe one additional position to the portfolio.
• Not looking to rush this market into doing anything right now. I’ll wait for it to show me its intentions first. I am only trading off of the fact, that it is struggling with the downward trend-line off of the April highs.