Trading Plan for April 1, 2011

Current Long Positions (stop-losses in parentheses): None

Current Short Positions (stop-losses in parentheses): None

BIAS: 100% Cash

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), ISM Manufacturing Index (10am), Construction Spending (10am)

My Observations and What to Expect:

• Futures are moderately higher heading into the open.
• Asian markets were mixed trading, but saw +1% gains in Hong Kong and China. European markets, likewise, did  well, averaging about 1% in returns.
• S&P is poised to open right at the previous lower-high, which a break and close above 1332, would effectively nullify the downtrend that we have seen of late.
• The market is well overbought since rallying off of its March lows. Strong possibility that we see this market cool-off some in the near-term.
• After 1332 is broken the next level of resistance is 1344 on the S&P.
• Volume was noticeably higher yesterday and above average despite the market finishing lower. 
• Oil is forming a cup and handle pattern on the daily charts and looks poised to move higher in the short-term. 
• Furthermore, the market doesn’t seem to be as concerned about higher oil as it was earlier this month, signifying that higher oil is priced into the market.
• Silver continues to break to new highs, but Gold looks to be forming a triple-top in its price action.
• My conclusion: Very difficult to bet against this market as all the bad news is ignored and good news is rallied on.

Here Are The Actions I Will Be Taking:

• Completely cash in the portfolio going into today. Did trade ABT yesterday for a small gain. l
• Will look to jump in some stocks to the long side today. Both from a day trade and swing trading perspective.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.