Trade Setups for March 30, 2010

Heading towards quarter-end, will there by window-dressing by the funds and a surge in pricing, or will the smart money become nervous about first quarter earnings potential, and as a result decide to begin liquidating postions? Those questions remain to be answered. As it stands right now though, the market is heading towards the open with a positive bias in the futures market.

On the economic front, we have a myriad of reports due out with the ICSC-Goldman Stores Sales at 7:45am ET, followed by Redbook at 8:55am, S&P Case-Shiller Home Price Index at 9am, and finally the Consumer Price Index and the State Street Investor Confidence Index, both at 10am. It’ll be a lot of information for the market to sort through, no doubt about it.

I am going to look to use any positive bias in the market this morning to liquidate my positions in BKS and UGI. But for what it is worth, (in case you’d like to stay in them), raise the stop-loss in UGI to 24.97.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): Clearwire Corp (CLWR) – Inverse head & shoulders pattern that saw a huge breakout after the neckline was broken. Has since pulled back to that neckline and found support there. Place your stop at 6.99.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): Pnm Resources (PNM) – After making new highs earlier this month, the stock pulled back nicely to long-term support levels, without violating the upward trend it is currently riding. Place your stop at 12.24.

Potential Swing Trade (Long): Waste Connections (WCN) – Another stock breaking out to new highs and then experiencing a light volume pullback that finds it’s support at the previous highs that were made. Also a bullish hammer doji candle has been formed in the past couple of days so that only adds to the bullish argument here. Put a stop in at 33.57.

Potential Swing Trade (Long): Overstock.com (OSTK) – This stock is one to keep an eye on, not to buy just yet, but to watch the potential for a cup-and-handle chart pattern over the next couple of days/weeks. A surge above 15.17 would be confirmation of the breakout. Place your stop at 12.77.