Pre-market update:
- Asian markets traded 0.5% lower.
- European markets are trading flat/mixed.
- US futures are trading 0.1% higher.
Economic reports due out (all times are eastern): Housing Starts (8:30),Productivity and Costs (8:30), Consumer Sentiment (9:55)
Technical Outlook (SPX):
- SPX violated support in a big way yesterday.
- The 50-day moving average, which has attracted plenty of buyers in the recent past may be tested at 1657. This could be where the dip-buyers come back in at.
- 30-minute chart detailing the head and shoulders pattern was conformed yesterday.
- SPX is short-term oversold. Previously, we have bounced as soon as that happens.
- One could in fact argue that it was just support that was broken, and that the rally off of the 6/24 lows is simply forming a new higher-low for the first time.
- On the other hand, the longer trend off of the November 2012 lows suggests the SPX could still fall another 40 points before finding support.
- I remain a buyer in this market. The opportunities to swing short are far too unpredictable, choosing to focus on the long side is the best way to manage risk and maximize profits at this juncture.
- Markets don’t care about the economy. 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:
- Sold CMI at 129.50 for a 3.3% gain.
- Sold Cab at 68.39 for a 2.8% loss.
- Sold BMRN at 63.81 for a 1.3% loss
- Sold MU at 14.4 for a 2.9% loss.
- Added three new positions yesterday.
- Currently 50% long/50% cash.
- Current Longs: FLR at 65.99, WYNN at 139.08
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
