Editor's Note:
Good evening. Other than a knee jerk sell reaction to news this morning today was rather quiet with nothing resolved. This suggests to me that traders may be nervous and we could get an intense down day which we will use to our advantage if it happens. Getting lubed up to the long side at these levels is not the right move. I am keeping things light for now and have reprinted the long Morgan Stanley trade set-up below for those interested.

NOTE: James will be taking over for me the remainder of the week. We have some new plays so stay tuned and I look forward to catching up with you next week.

Long MS - MS gapped higher on 7/21 after a stellar earnings report and has been consolidating in a bull flag for a couple of weeks. The stock has broken out of the bull flag to the upside and looks poised to test its 200-day SMA which is about +5% from current levels. If the broader market fails at these levels MS will also likely fail so a tight is suggested.