The Importance of a Plan..

7:30 AM EST As a trader, it is very important to have a plan and stick to it. That was very evident yesterday. I mentioned that the strongly higher futures were going to be an opportunity for the big money to sell the market off. That was exactly what happened. My plan was to take some off in some of my positions. That's exactly what I did. My position in Brown Forman (BF-B) was completely closed out yesterday. The extremely positive reaction to earnings was enough for me to take profits. It touched briefly above the 200 day and retreated. That was not what I wanted to see. I put in a limit order significantly above what I thought it would trade for the day. It got filled and I was happy.

On the other side of the tradeplan is the Altira (MO) trade I mentioned the other day. My plan was to buy some and wait for a pullback to buy more. I bought some in the middle of yesterday's range. The position ended the day a little under water, but my plan is to buy more soon. The technicals are less attractive today than they were yesterday, but this is not a stock that will be going to zero any time soon. I think another pullback will provide an opportunity to get some more a little cheaper.

The market should be essentially directionless today. Those trading futures are going to call it a "grind" . You are probably going to see a grind. The catalysts will be jobless claims and retail sales. I can't imagine either of those numbers doing much to move the market. I really do not have much of a plan to buy anything or sell anything today. I sold when the market was strong yesterday and I will be looking at some purchases today. Until next time, stay low risk..