Trading Plan for March 29, 2011

Current Long Positions (stop-losses in parentheses): VG (4.10)

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

BIAS: 10% Long

Economic Reports Due Out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case -Shiller HPI (9am), Consumer Confidence (10am), State Street Investor Confidence Index (10am)

My Observations and What to Expect:

• Futures are slightly higher heading into the open.
• Asian markets traded slightly lower while European markets are trading in similar fashion.
• S&P managed to sell the days gains and finish at session lows.
• To break the downward trend that the market is currently in, needs to break 1332, which would ultimately represent a higher-high.
• Should yesterday’s weakness creep into today the 50-day moving average at 1306 will be in play.
• Volume continues to weaken considerably.
• Nasdaq finished yesterday’s session by putting in a very bearish engulfing candle pattern and closed decisively below the 50-day moving average.
• Commodities continue to make or trade near highs. However, Gold is has a double top pattern developing.
• Dollar has rallied back to its descending trend-line which will create resistance and place the currency at a significant inflection point.
• My conclusion: Market is holding its cards close to its chest right now. To say we are likely going one way or another is a huge gamble, as the market isn’t providing us with any significant clues.

Here Are The Actions I Will Be Taking:

• Added VG to the portfolio yesterday at $4.22.
• Will be very selective about any overnight positions that I take at this point.
• Will trade light, and will lean toward taking gains on an intraday basis. Any long positions I take on will be on an intraday basis.
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas.