Trade Setups for March 31, 2010

Heading into the open, the market is looking flat with a slight bearish tone as futures are currently trading just below break-even. We have a few reports making their way out this morning with ADP Employment at 8:15am, the Chicago PMI at 9:45am, and Factory Orders at 10am. Don’t forget either that the market will be closed on Good Friday for equities (not futures though).

Not holding anything currently in the portfolio – I’m 100% cash at the moment.

Here are Today’s Trading Ideas

Potential Swing Trade (Long): McAfee (MFE) – Nice cup and handle pattern put in during the early part of this year, as it has broken through the neckline of the pattern to confirm the breakout. Its recent  pullback to support and the 50-day moving average has allowed for a nice trading opportunity to go long in – place your stop at 39.51.

Potential Swing Trade (Short): Bally Technologies (BYI) – After making new highs at the beginning of the new year, this stock has completely fallen apart, breaking critical support levels, and putting in lower lows in the process. Right now it is trading below those critical support levels still, but to close to my desired stop-loss to go short in right away – wait for the stock to fall another 1-2% before initiating a short position. Stop-loss should be at 41.25.

Click here to See the Rest of My Trading Ideas.

Potential Swing Trade (Long): General Maritime Corp (GMR) – High risk play here, but has the opportunity to reward handsomely, should this stock breakout of consolidation. Nice double bottom put in followed by three consecutive higher-lows, this stock has recently been consolidating at and around its long-term support levels. Place your stop at 7.19 .

Potential Swing Trade (Short): Universal Travel Group (UTA) – This stock has flat lined for the past 3 months, but a break below 9.10 would be a huge shorting opportunity here. You can either get in now, and let the stop-loss at 10.06 play itself out, or wait for confirmation by allowing the breakdown to occur before jumping in (but without as tight of a stop of course).