Pre-market update:
- Asian markets traded 0.2% higher.
- European markets are trading 0.2% lower.
- US futures are trading 0.2% higher ahead of the market open.
Economic reports due out (all times are eastern): None
Technical Outlook (SPX):
- First time in six trading sessions where the market finished lower on the day.
- Volume was extremely low on Wednesday and I expect more of the same today due to it being Christmas.
- Short-term/minor support is found at 1274 area and needs to hold today.
- We are currently in the period that is considered to be the historic “Santa Rally” – be careful with any attempts to short this market.
- SPX 30 minute chart shows a heavy sell-off in the final 30 minutes of trading on Friday and could represent some distribution that is taking place intraday.
- VIX dropped another 2.9% down to 14.37.
- T2108 (% of stocks trading above 40-day moving average) showed consolidation and minor pullbacks in stocks by dropping 1.17% down to 51.69.
- 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:
- Closed out SLB at 79.83 on Wednesday for a 3.6% gain.
- Closed out WFM at 48.79 on Wednesday for a 1.1% loss.
- Added one additional position to the portfolio on Wednesday.
- Will consider adding 1-2 new positions today.
- Remain long UPRO at 117.28, FB at 77.98, YHOO at 51.28.
- 50% long / 50% cash.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
