Pre-market update:

  • Asian markets traded 0.4% lower.
  • European markets are trading 0.4% lower.
  • US futures are trading 0.8% higher ahead of the market open. 


Economic reports due out (all times are eastern): Challenger Job Cut Report (7:30), International Trade (8:30), Jobless Claims (8:30), Productivity and Costs (8:30), EIA Natural Gas Report (10:30), 

Technical Outlook (SPX):

  • A promising day yesterday was wiped out in the final minutes of trading with negative news between the ECB and Greece hitting the wire.
  • This created a panic sell that saw good trades quickly go negative. 
  • Today SPX has rebounded nicely and looking at gapping above the descending trend-line as marketed below. 
  • Despite trading above it yesterday, the trend line ultimately rejected price at the closing bell. 
  • VIX rose 5.8% to 18.32. 
  • The market remains very fickly and yesterday’s late day sell-off was a great example of how the algos and HFT’s are reacting to market news without even considering its content. Just a bunch of automatic sell orders that come online when news hits the air waves. 
  • Today’s early morning strength is huge, after getting the kind of selling late yesterday. It shows that the bulls are still buying the dip in this market. 
  • SPX needs to make it a point in the coming days to get past 2064 – a key price resistance level. 
  • Volume was below average yesterday. 
  • Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade as are the oil stocks. 
  • 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 yesterday. 
  • Sold DLTR yesterday at $75.12 for a 5.4% gain. 
  • Sold LO yesterday at $66.05 for a 0.4% loss. 
  • Will consider adding one possible new position as well as tightening the stop-losses on existing profitable positions. 
  • 30% Long / 70% cash. 
  • Remain Long: UPRO at 121.81, NFLX at 448.95.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 2-5-15