Pre-market update:

  • Asian markets traded 0.2% higher. 
  • European markets are trading 0.2% higher.  
  • US futures are trading 0.1% lower ahead of the bell.  


Economic reports due out (all times are eastern): MBA Purchase Applications (7), Wholesale Trade (10), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

  • SPX has closed higher for six straight days. That is a hard trend to continue at this point. Typically it is very difficult to get beyond 7 days so expect some type of consolidation or weakness over the next day or two. 
  • Resistance at 1684 will be the key level for the SPX to break through going forward. Doesn’t have to happen today, but the market needs to avoid giving up large chunks of their profits in order to keep the momentum on their side. 
  • Strong pick up in volume yesterday, showing more evidence that the bears are being significantly squeezed out of their short positions. 
  • Why anyone wouldn’t expect these types of bounces from the market at this point is beyond me. As long as the fed is involved in this market, you should expect the market to continuously bounce higher. 
  • Over the last 7 days we have bounced roughly 55 points – this is impressive. 
  • SPX back firmly in overbought status short-term. 
  • VIX dropping back down into the 14’s. 
  • President’s speech on Syria last night has had little impact on the markets today. 
  • 1649 represents rising support of the trend-line off of the November 2012 lows – hold it at all costs. 
  • Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

  • Covered ANGI yesterday at 20.15 for a 3.5% gain. 
  • Added OSK at 46.91 as a long yesterday. 
  • Currently 40% long / 10% Short / 50% cash.  
  • Current Longs: SLB at 82.34, URS at 50.65, JCI at 41.66. 
  • Current Shorts: MON at 101.47.
  • Will look to add 1-2 additional positions to the portfolio today. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 9-11-13