Pre-market update:
- Asian markets traded flat.
- European markets are trading 0.7% higher.
- US futures are trading 0.5% higher ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Durable Goods Orders (8:30), GDP (8:30), Corporate Profits (8:30), Redbook (8:55), FHFA House Price Index (9), Consumer Sentiment (9:55), Personal Income and Outlays (10), New Home Sales (10), Richmond Fed Manufacturing Index (10)
Technical Outlook (SPX):
- SPX continues its impressive rally for a fourth straight day and closed at new all-time closing highs.
- This marks 106 points in just 4 days.
- Today’s gap will send SPX above minor resistance as shown in the chart below.
- Volume was much lighter than what we have seen in recent days – much of that has to do with it being the week of Christmas and much lighter trading activity.
- I expect that the rally should trend favorably into the end of the year, which is typically the time period for the infamous “Santa Rally”.
- VIX dropped another 7.5% down to 15.25.
- T2108 (% of stocks trading above 40-day moving average) rose only 1.7% to 50.58.
- SPX 30 minute chart is slowing down some but still looks healthy and strong.
- The market is only open for a 1/2 day tomorrow, closing at 1pm, and closed on the 25th the entire day for Christmas.
- 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.
- 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 USO at 21.07 for a 2.2% loss.
- Will consider adding 1-2 new positions today.
- Remain long SLB at 82.77, UPRO at 117.28, FB at 77.98, YHOO at 51.28.
- 60% long / 40% cash.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
