Trading Plan for April 25, 2011

Current Long Positions (stop-losses in parentheses): DISCK (36.25), RAX (43.46), ENZN (10.86), AAPL May 350 Calls, ATML (13.88)

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

BIAS: 20% Long

Economic Reports Due Out (Times are EST): New Home Sales (10am)

My Observations and What to Expect:

• Futures are up slightly heading into the open.
• Asian markets were mixed seeing returns range from -1.5% to 1%. European markets were slightly higher. 
• 1340 looks to be tested early this morning, with an opening price just below the critical level. 
• My expectations as it approaches that level, is that it will continue to struggle with 1340, but ultimately break it. In essence, I don’t expect that we’ll just blow right through it. 
• Close above 1340 and the much talked about double-top being formed is done and over with, and we’ll be seeing new highs in the short-term.
• Keep in mind that the Fed is meeting this week, and even holding a lunch-time press conference – which is new.
• Volume was light last week, but mainly due to the holiday week. Wouldn’t place a lot of concern on it.
• Silver is parabolic, and is looking extremely dangerous for going long in at this point. If you have a long position in this commodity, be more concerned about locking in profits at this point.
• After 1340, minor resistance at recent highs of 1344, and major resistance at 1430. Between those two marks there is no other price resistance.
• My conclusion: The bounce off of last Monday’s lows looks very healthy (though filled with gaps), and once it can break through 1340, should see a nice move higher.

Here Are The Actions I Will Be Taking:

• Sold ATML on Thursday at $14.80 for a 7.7% gain, and GT at $15.96 for a 2.2% gain. Sold my AAPL May 350 calls, at $11.10 for a 120% gain on the premium, and 6.5% gain on the underlying asset.
• Tightened the stop-loss in RAX yet again today.
• Another strong move in RAX, would likely lead me to book my gains in the position.
• Tech plays are performing very well right now, and will likely be the focus of my trading going forward.
• Will look to add an additional 1-2 new positions today should the market climb and stay above 1340.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).