Trading Plan for April 5, 2011
Current Long Positions (stop-losses in parentheses): ECA (34.45)
Current Short Positions (stop-losses in parentheses): None
BIAS: 10% Long
Economic Reports Due Out (Times are EST): None
My Observations and What to Expect: ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), ISM Non-Manufacturing Index (10am), FOMC Minutes (2pm)
Futures are slightly lower heading into the open.
Asia saw some wild returns ranging from -1% up to 1.5%, while Europe traded about 0.5% lower.
S&P is really struggling with the 1332 level in the market. Though it seems fine with breaking it on an intraday basis, it doesn't seem able to hold it into the close.
Volume continues to come in as less than mediocre.
Caution is warranted with the struggle at 1332 and the overextended market to the upside. Could result in, at the very least, some consolidation short-term.
Looking at the 30-minute chart on the S&P suggests that we are seeing consolidation after breaking the upward trendline off of the 3/16 lows, yesterday.
We've see the market give up a lot of its early morning gains lately, which makes me believe that the market is having a hard time attracting buyers at current price levels.
I need to see some follow through on yesterday, and a close above 1332 before we technically break the downtrend the market has been in since 2/18/11.
After 1332 is broken the next level of resistance is 1344 on the S&P.
My conclusion: While there is no reason to believe the market won't continue to march higher going forward, I believe we could see a few days of profit taking on the horizon.,
Here Are The Actions I Will Be Taking: