Pre-market update:
- Asian markets traded 0.4% lower.
- European markets are trading 0.7% lower.
- US futures are trading 0.1% lower ahead of the market open.
Economic reports due out (all times are eastern): Dallas Fed Manufacturing Survey (10)
Technical Outlook (SPX):
- SPX pushed higher for the sixth time in the last seven trading sessions, closing yet again at new all-time closing highs.
- Last three trading sessions has seen heavy sell-offs in the final 30 minutes of trading.
- Significant price-level support for the market right now is 2074.
- Watch the 5-day moving average as a break below could indicate a potential change in direction for the market.
- Despite the market trading at all-time highs, on 53% of stock are trading above their 40-day moving average. I would typically expect this number to be around 70-80%.
- VIX moved slightly higher to 14.68 for a 0.9% rise.
- SPX 30 minute chart still looks solid. Not as euphoric as before, but definitely trending nicely higher.
- Expect volume to continue to to be light this year.
- SPX is closed on Thursday for New Year’s Day.
- We are currently in the period that is considered to be the historic “Santa Rally” – be careful with any attempts to short this market.
- 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 one new position on Friday.
- Did not close out any positions on Friday.
- Will consider adding 1-2 new positions today.
- Remain long UPRO at 117.28, FB at 77.98, MXIM at 31.45, CMG at 665.48, AAL at 51.26.
- 60% long / 40% cash.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
