Trading Plan for April 30, 2012

Economic Reports Due out (Times are EST): Personal Income and Outlays (8:30am), Chicago PMI (9:45am), Dallas Fed Manufacturing Survey (10:30am)

Premarket Update (Updated 8:00am eastern):

• US futures are slightly lower ahead of the bell. 
  
• Asian markets traded in a wide range from -0.72% up to +1.7%
  
• European market averages were lower but ranged from -0.7% up to +0.1%
  

Technical Outlook (S&P):

• Friday marked the fourth consecutive day of rallying for the S&P and pushed through price resistance at 1401. 
• The market’s whip-saw action of late has created a convergence of moving averages (10, 20 & 50 DMA’s). 
• The overall market is heavily in overbought territory and desperate for at least some consolidation. 
• Not until we jet back and above 1422 will this market have resumed the rally back off of the October lows. Despite leaning bullish towards this market now, there still remains the possibility of the market forming a lower low between current price and 1422. 
• Friday’s continuation rally changed the character of the market to bullish by breaking out of the range the S&P had been trading at. 
• Now the bulls need to make sure that any weakness that may come there way doesn’t cause them to fall back below 1392. 
• The previous trend-line off of the October lows has become resistance for price action on the underside. 
• On the weekly chart, we confirmed the bearish wedge pattern that we had been following for weeks. Very bearish development for the market. 

My Opinions & Trades:

• I remain bullish in the short-term after witnessing the market breaking out of the 1392/1357 range last week. 
• Sold HEAT as a day-trade on Friday at $7.51 from $7.52 for -0.1% loss. 
• Bought GCA at $8.51. 
• Shorted AMKR at $5.54. 
• Covered RL yesterday at $171.10 for a -1.7% loss. 
• Remain long in CLX at $70.19 and LIZ at $13.40

Chart: