Trading Plan (July 29, 2009)

Yesterday was a difficult trading day, it looked as though there were some nice longs towards the end of the day....but my instincts have proven me right again. The MMs were trying to suck in as many bulls as they can and I am not one of them.

The pullback in energy and financials was offset with some relative strength in some tech and medical stocks.

Basically the market is currently in consolidation phase before the next big move. Picking stocks was like shooting crap yesterday...but overall. Some sectors are revealing a little bit of itself like
Precious Metal, OIH, Utilities. However, XOM and CVX are still holding up quite well despite a decline in Crude Prices....these two big brothers are big components of the DOW...if they fall...then that would have significant impact on the DOW.

The OIH chart says the trend is slightly bearish. Today and tomorrow shall be key to see where things are heading. As of now, Crude is down another dollar. Note the multiple layers of support available to OIH, technically speaking the target price is 100. However, if the number of puts rise...perhaps the target price could be more than 100 by OpEx...lol


I am also watching GS, we shall see if the bulls will appear near the 20 MA.


Buyers appeared when AMZN touched the 50 MA

Don't you just love H&S pattern, these patterns have a tendency to behave the opposite in our time. Ignore what the books teach you and keep QCOM on your radar.


In summary, I see that the tech sector and possibly some financials are setting up for a rally soon...could be either Thursday or Friday. Any pullbacks are buying opportunities.....it is just a matter of where or when the rally will trigger.