Trade Plan For Monday

Trade Plan for Monday This past week was one of the worst weeks we have seen in quite some time but it was not totally unexpected. The fact that we have had such a large move off the bottom it is only natural to pull back and to see some profit taking. We were however hoping this pullback would be with light volume and holding support levels but it wasn’t. The NASDAQ hit resistance at the 100 day moving average and it acted like a steel wall sending the index lower. The sideways consolidation we were looking for was below this 100 day moving average which is a bad sign and later that bad sign turned into something much worse when we broke the 50 day and 200 day moving averages. Our last hope is to hold the top of the downtrend channel and the February lows. We think there is a reasonable chance that we do hold these levels but if we do not then we may look to close out all long positions as we have the potential to slide fast to lower levels bringing everything down with it. We made it through some tough economic announcements this past week and now we will also be watching the earnings results from many retailers this week. Even though a majority of companies had better than expected earnings these

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