Trading Plan for May 17, 2011

Current Long Positions (stop-losses in parentheses): NTAP (52.45), PEP (69.75), RSH (15.93), STZ (22.20), CHKP (54.19), SSO (53.35)

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

BIAS: 60% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Housing Starts (8:30am), Redbook (8:55am), Industrial Production (9:15am)

My Observations and What to Expect:

• Futures are flat heading into the open.
• Asia was mixed in their trading, while Europe is averaging about 0.5% lower.
• Commodities are weaker yet again today. It would seem logical at this point, that we are nearing, at the very least, a short-term bottom that should lead to a sizable bounce.
• S&P managed to finish right on the all-important 1329 support level. Watch to see whether we close below this level, or whether we manage a bounce of some kind.
• 3 additional support levels to watch on the S&P: 1323 – 50-day moving average, 1319 – long-term trend-line, 1294 – another major long-term support level.
• For starters, the bulls need to break the previous day’s highs – something that hasn’t been done in over a week, and also maintain any gains into the afternoon, which has been where we’ve seen the most weakness of late.
• My conclusion: 1329 will be where I draw the line in the sand. I will then become more day-trading oriented in my trades at that point.

Here Are The Actions I Will Be Taking:

• Added SSO off of an extreme TICK negative tick reading on Monday after having sold my other position earlier in the day. 
• Closed out SSO at $54.59 for a 0.5% gain, NTAP at $53.09 for a 0.6% gain, RSH at $16.13 for a 1.4% loss, and CHKP at $54.41 for a 2.1% loss. 
• Added EP at $18.22 yesterday.
• Will hold off adding any new positions, unless the market can show it is holding support at the 1329 level.
• I will close out my SSO position before the end of the day.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).