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Trading Plan for April 1, 2011

April 01, 2011 – Comments (0) | RELATED TICKERS: SPY

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

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

BIAS: 100% Cash

Economic Reports Due Out (Times are EST): Employment Situation (8:30am), ISM Manufacturing Index (10am), Construction Spending (10am)

My Observations and What to Expect:

Futures are moderately higher heading into the open.

Asian markets were mixed trading, but saw +1% gains in Hong Kong and China. European markets, likewise, did  well, averaging about 1% in returns.

S&P is poised to open right at the previous lower-high, which a break and close above 1332, would effectively nullify the downtrend that we have seen of late.

The market is well overbought since rallying off of its March lows. Strong possibility that we see this market cool-off some in the near-term.

After 1332 is broken the next level of resistance is 1344 on the S&P.

Volume was noticeably higher yesterday and above average despite the market finishing lower.

Oil is forming a cup and handle pattern on the daily charts and looks poised to move higher in the short-term.

Furthermore, the market doesn't seem to be as concerned about higher oil as it was earlier this month, signifying that higher oil is priced into the market.

Silver continues to break to new highs, but Gold looks to be forming a triple-top in its price action.

My conclusion: Very difficult to bet against this market as all the bad news is ignored and good news is rallied on.

Here Are The Actions I Will Be Taking: