Trading Plan for May 31, 2011

Current Long Positions (stop-losses in parentheses): SLB (82.77)

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

BIAS: 100% Cash

Economic Reports Due Out (Times are EST): S&P Case-Shiller HPI (9am), Chicago (9:45am), Consumer Confidence (10am), State Street Investor Confidence Index (10am), Farm Prices (3pm)

My Observations and What to Expect:

• Futures are up strong heading into the open. 
• Asia was up on average 2%, while Europe is doing nearly the same. 
• With this early market strength, we are poised to open in the mid-1340’s on the S&P, which would break us out of the downward trend that we have currently been trading in for the entire month – that is a huge feat in itself. 
• A close above 1347, would incite bullish enthusiasm going forward, representing a break of the previous short-term lower-high. 
• With the early morning strength we are looking at opening above the 20-day moving average. 
• On Friday, the market managed to close above the 10-and 20-day moving averages. 
• Today’s move, if it holds, looks as if we could be making a move to previous Recovery Highs. 
• The most important is still 1294, which represents the previous higher-low. Break it, and things will unravel at the seams. 
• My conclusion: Surprise move out of the market today, and should move hold, helps to repair the bullish sentiment and my willingness to go long aggressively in the short-term. 

Here Are The Actions I Will Be Taking:

• 100% cash, but will be looking to add 3-5 new positions to the portfolio today. 
• Will need to be careful in doing so, that I don’t get in where the market decides to start taking profits. 
• Sold SLB for a small profit on Friday. 
• Follow me in the SharePlanner Chat-Room today for all my live trades and ideas (as well as everyone else’s).