Trading Plan for April 7, 2011

Current Long Positions (stop-losses in parentheses): AAPL (334.75)

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

BIAS: 10% Long

Economic Reports Due Out (Times are EST):Jobless Claims (8:30am), EIA natural Gas Report (10:30am), Consumer Credit (3pm)

My Observations and What to Expect:

• Futures are moderately higher going into the open.
• Asian and European markets were mixed. 
• While the S&P managed to close above the 1332 finally, thereby ending the, albeit short in tenure, market downtrend, with a new higher-high.
• For four straight days we have been trading within tight consolidation forming doji candles on 3 of them. 
• Watch for a close below 1328, to determine whether this market may see additional selling in the short-term.
• A break of 1328, could lead to, at the very least, a mild pullback. 
• The S&P continues to find strength with the 10-day moving average – trading above it now for 12 straight days. 
• Volume has seen a slight increase over the last two days. 
• Overbought conditions in the short-term are being alleviated to a degree. 
• Weekly charts show the market looking very healthy. 
• Next level of resistance is 1344 on the S&P.
• My conclusion: Recent consolidation might be the profit taking we’re looking for. The odds are very favorable we see a rip higher in the short-term. 

Here Are The Actions I Will Be Taking:

• Sold AAPL yesterday for a 1.4% gain, ERTS for a 1.05% gain, SU for a 0.8% loss, and ECA for a 1.4% loss. 
• Will look to book some gains in my existing positions today on market strength, and also look for other trading opportunities to the long side.
• Added AAPL again to the portfolio at $338.36.
• Will hold off buying anything in the first 30 minutes today.
• Watching TRN, RA, IBM for potential breakouts today. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.