Trading Plan for July 9, 2010

Current Long Positions (stop-losses in parentheses): QQQQ (Hedge)

Current Short Positions (stop-losses in parentheses): ESV (42.84), MR (33.39), SPY (109.07), NUS (27.59)

BIAS: Neutral

Economic Reports Due Out (Times are EST): Wholesale Trade (10am)

My Observations and What to Expect:

Futures are currently flat - no clear bias at this point.
No significant economic reports due out today either, could make for a quiet session, especially with investors focusing their attention on earnings coming out next week, starting with Alcoa (AA) on Monday.
The rally we have seen over the past three sessions is on pace to become overextended fairly quickly, having rallied 60 points on the S&P already.
Can't see more than 20-30 points of upside left, before we see the resumption of the downward trend.
Volume continues to weaken in a near-horrific manner. Rally seems to be more about shorts covering their positions rather than buyers really being enthusiastic about this market.
An Intraday reversal to the downside would be huge for the bears, and would likely make any hopes of a big rally D.O.A.

Actions I Will Be Taking: