Trading Plan for September 29, 2011

Current Long Positions: Netflix (NFLX) Nov 160 Calls

Current Short Positions: None

BIAS: 7% Long

Economic Reports Due Out (Times are EST): GDP (8:30am), Jobless Claims (8:30am), Corporate Profits (8:30am), Bloomberg Consumer Comfort Index (9:45am), Pending Home Sales (10am), EIA Natural Gas Report (10:30am), Farm Prices (3pm)

My Observations and What to Expect:

• Futures are slightly higher heading into the open.
• Most of Asia traded higher, ranging from -0.66% to 1.1%, while Europe as a whole is trading flat.
• GDP and Jobless claims will have a large impact on market direction today. 
• The S&P, for the second day in a row, failed to break and close above the 10 and 20-day moving averages. These two averages will be the main resistance levels to watch again. 
• The S&P is now continuing the confirmation in the bear-flag pattern. 
• Despite the respectable sell-off yesterday, there didn’t seem to be a lot of conviction to the move, nor did there seem to be any  panic involved. 
• Support for the market will come into  play again at the 1120 level, followed by 1114 and then again at 1101. 
• Support for gold is coming up on a critical long-term trend line. On GLD this is at $154.
• Make sure that whatever you do, that you protect the gains that you have, and be ready for sudden and quick reversals in this market.
• The bears have yet to successfully trade AND close below 1120 on the S&P. There is continued buying support at these levels. Should this level eventually break, watch 1114, and then 1101 for additional support.
• This week marks the last trading week for the quarter, and should expect some interesting price moves as we head towards Friday.
• My Conclusion: GDP and Jobless claims came in very bullish and should help to support the markets throughout the day, barring anything out of Europe. 

Here Are The Actions I’m Taking:

• Traded Direxion Small Cap Bull 3x SHares (TNA) for 2.6% in gains, and Direxion Small Cap Bear 3x (TZA) for 1.6% in gains. 
• Current Average price on NFLX calls is $5.86. Will cut this position if the stock closes below $125.
• Will watch market action for the first 30min to 1 hour of trading before jumping into anything else.
• May book the gains in my NFLX calls if they make a nice move today.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).

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