Trading Plan for July 12, 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): None

My Observations and What to Expect:

Earnings for Alcoa is released today. Alcoa sets the stage for the earnings season.
The rally seen last week makes me think that we will see the market sell the earnings.
Market is neither overbought nor oversold on any significant indicator at this point.
Volume continues to drop off in a major way - further evidence of a dead-cat bounce.
No major news scheduled, could make for a quiet open.
Continue to watch BP efforts to plug the hole in the Gulf, and the affects it has on the markets, and energy in particular as a result.
S&P rally beyond 1090ish seems unlikely. Rally is probably coming to an end here, real soon, if this is indeed a bull-trap. All indications says it is.

Actions I Will Be Taking: