Trading Plan for September 26, 2011

Current Long Positions: Netflix (NFLX) Nov 160 Calls

Current Short Positions: None

BIAS: 4% Long

Economic Reports Due Out (Times are EST): Chicago Fed National Activity Index, New Home Sales (10am)

My Observations and What to Expect:

• Futures are up more than 1% heading into the open. 
• Asia saw losses of over -2% during their trading session. Europe has changed course and seeing gains range from 1% up to 3.3%
• Some very bizarre overnight trading that saw us on the S&P futures -8, +15, -15 and +21. With Gold down over $100, and silver down over 10% at one point. 
• Based on the aforementioned volatility, I would expect the same to occur in trading today - for it to be a very volatile day - protect those gains that you have. 
• A major move from the market today would put us in a position to challenge the resistance and underside of the bear-flag breakdown level. This would occur at 1166 - about 30 points higher than current price. 
• The bulls 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. 
• Volume has picked up over the last three trading sessions. 
• We are on pace for five straight down months in the market - the likes of which we haven't seen happen since 11/07-3/08
• This week marks the last trading week for the quarter, and should expect some interesting price moves as we head towards Friday. 
• The panic in selling that we saw back in early August is clearly back, ripping off large chunks of share value across the board.
• S&P confirmed the head and shoulders pattern from the past month.
• My Conclusion: I'm  not trusting the market strength this morning - overnight trading showed us that this market is trading on pins and needles, and that strength should be opportunities to book gains. 

Here Are The Actions I'm Taking:

• Traded in ProShares UltraPro S&P500 (UPRO) and Direxion Small Cap Bull 3x Shares (TNA) on Friday, but the market  provided little opportunity. Very small loses of less than -0.15% taken on each. 
• Bought Netflix (NFLX) Nov $160 calls at $7.30/share on Friday. Looking for a bounce off of the 61.8% retracement level. 
• 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. 
• Make sure to get Adam's Watch-List for today. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else's).

Join the SharePlanner Trading Network for Free - and be a part of the only Real-Time Trading Network.