Narrative:

During climb to requested cruise altitude of 35000' we were stepped from 4000 to 12000 to 16000 to 19000, etc and stopped at 33000 for a short period of time (5 min). I heard ATC say 340 for traffic and started a climb to FL340. My first officer responded to the center then noted that I was climbing instead of turning to a heading of 340 degree for traffic. I stopped the climb at 33,600 and returned to 33000. ATC questioned my altitude. When error was clarified we were turned to a heading of 360 degree. I made the mistake of thinking ahead and hearing what I expected to hear and not what was said.

Google
 

Original NASA ASRS Text

Title: CLRNC MISINTERP BY PIC LEADS TO AN ALT DEVIATION.

Narrative: DURING CLIMB TO REQUESTED CRUISE ALT OF 35000' WE WERE STEPPED FROM 4000 TO 12000 TO 16000 TO 19000, ETC AND STOPPED AT 33000 FOR A SHORT PERIOD OF TIME (5 MIN). I HEARD ATC SAY 340 FOR TFC AND STARTED A CLIMB TO FL340. MY F/O RESPONDED TO THE CENTER THEN NOTED THAT I WAS CLIMBING INSTEAD OF TURNING TO A HDG OF 340 DEG FOR TFC. I STOPPED THE CLIMB AT 33,600 AND RETURNED TO 33000. ATC QUESTIONED MY ALT. WHEN ERROR WAS CLARIFIED WE WERE TURNED TO A HDG OF 360 DEG. I MADE THE MISTAKE OF THINKING AHEAD AND HEARING WHAT I EXPECTED TO HEAR AND NOT WHAT WAS SAID.

Data retrieved from NASA's ASRS site as of July 2007 and automatically converted to unabbreviated mixed upper/lowercase text. This report is for informational purposes with no guarantee of accuracy. See NASA's ASRS site for official report.