Trading Plan for April 27, 2011

Current Long Positions (stop-losses in parentheses): DISCK (36.79), RAX (43.46), HRB (17.39), GOOG (522.00), ADI (38.99), CA (23.95), UNP (95.45), NFLX June 270 Calls.

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

BIAS: 51% Long

Economic Reports Due Out (Times are EST): MBA Purchase Applications (7am), Durable Goods Orders (8:30am), EIA Petroleum Status (10:30am), FOMC Meeting Announcement (12:30pm)

My Observations and What to Expect:

• Futures are up slightly heading into the open.
• Asian markets were mixed with Japan being up 1.4%. Europe is seeing gains of about 0.5% today.
• We broke the S&P 1340 stronghold in a very convincing manner yesterday, and closing a fresh recovery highs. Very strong positive for the markets. 
• By breaking 1340, we confirmed the inverse head and shoulders that had been in development since February ’11. Last time we confirmed a IH&S pattern was back in Sept ’10 and we rallied 220 points after the confirmation.
• The next logical resting place for the market is 1430, which would mark a very strong move by the markets.
• One anomaly about yesterday’s trading action was the weakness in AAPL, BIDU, AMZN, VMW, and others despite the market being up strong. 
• Like yesterday, I think we’ll see a lot of short covering in the days ahead, as the bulls give up their bearish positions and forced to cover.
• Watch the Bernanke Press Conference today – it is at 12:30pm EST, and could throw us a curve ball. Should create some market volatility.
• The much talked about double top in the markets has been rendered null and void with a breakout to new highs yesterday. 
• Higher-low has been established at 1294.
• Market is overbought in the short-term.
• Silver is looking like it is in the process of rolling over here based on volatility and volume levels.
• My conclusion: I’m cautious about the Fed Statement today, but overall, I am positive on this market to march higher in the short and intermediate time-frames.

Here Are The Actions I Will Be Taking:

• Took gains in RAX at $43.97 for 4.7% gain and DISCK at $37.22 for a 4.3% gain.
• Tightened the stop-loss on GOOG.
• Added 4 new positions ot the portfolio: ADI at $39.86, CA at $24.39 and UNP at $99.17, NFLX June 270 Calls at $2.90.
• Will closely monitor the action in HRB to determine whether it should be held another day. Yesterday was very weak.
• 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).