Pre-market update:
- Asian markets traded 0.8% higher.
- European markets are trading 1.8% lower.
- US futures are trading 0.1% higher ahead of the market open.
Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30), Existing Home Sales (10)
Technical Outlook (SPX):
- SPX continues to rally in similar fashion to what we saw when the market bounced off of the October lows.
- Now SPX sits just below all-time highs which should be challenged today.
- This is traditionally the week that the Santa Rally begins. Look for what should be favorable conditions.
- Each year the market has fairly well during this week of trading. The last time it did not was 2007 and it served as a precursor to the 2008 market sell-off.
- Volume on SPY remained very strong on Friday.
- VIX dropped another 1.9% to 16.48.
- T2108 (% of stocks trading above 40-day moving average) rose another 7% to 49.76 on Friday.
- SPX 30 minute chart looks solid with higher-highs and higher-lows.
- The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up.
My Trades:
- Added two new long positions on Friday.
- Closed out SBUX at 79.6 for a loss.
- Will consider adding 1-2 new positions today.
- Remain long SLB at 82.77, UPRO at 117.28, FB at 77.98.
- 50% long / 50% cash.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
