Trading Plan for Wednesday (July 8, 2009)

I was very disappointed yesterday...not so much of the market but more about the intermittent connection disruptions in my internet connection. It sucks! But still, I rather not take the risk to plunge into a trade to stay green.

The MMs are so good at keeping the SPX above 880. As mentioned if it weren't for the financials and some rally going on elsewhere....SPX would have been below 880 today. We just have to see what happens next, no point guessing.


I think the last piece of the puzzle could be the financials, transports and technology. The selling for the energy sector is more or less done...provided that it does not break down from here....that is a possibility too!...lol

Here are the charts of the Dow and the XLE Energy ETF....
XLE has retraced 50 %, text book wise...this sector could bounce. We just have to watch and see.


One final word...if you see SPX going sideways...do watch the VIX ya.