Pre-market update:

  • Asian markets traded 0.8% higher.
  • European markets are trading 0.1% higher.
  • US futures are trading 0.1% higher ahead of the market open. 


Economic reports due out (all times are eastern): Gallup US Consumer Spending (8:30), PMI Manufacturing Index (9:45), ISM Manufacturing Index (10), Construction Spending (10)

Technical Outlook (SPX):

  • A mini short squeeze into the close on Friday puts SPX in a position today to breakout of the 5-day range it is currently stuck in. 
  • Even with the consolidation the SPX continues to maintain the 5-day moving average. 
  • Volume was slightly higher than what we saw from the SPX reading during the rest of the week. 
  • SPX remains staunchly in overbought territory. 
  • On the weekly SPX broke out of its trading range last week. 
  • 2000 on SPX is starting to develop as solid support for AAPL. 
  • Even with SPX making new all-time highs, less than 60% of stocks are trading above their 40-day moving average. 
  • The head and shoulders pattern on SPX 30-minute chart is was negated with the end of day rally. 
  • A pullback would be much needed – doesn’t need to be a strong one, but enough to let prices cool off some on individual stocks. 
  • A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much “froth” in the market. 
  • Continue to tighten stops and take profits where you can on positions ensuring that you don’t get caught with your pants down if the market suddenly sells-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:

  • Closed out AAPL on Friday at $102.57 for a 7.9% gain. 
  • Did not add any new positions to the portfolio. 
  • Remain long CTXS at 69.96, STT at 70.99, TJX at $59.65, NBL at 70.90, TSLA at 263.76.
  • Will look to add 1 new long position today. 
  • 50% Long / 50% Cash
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 9-2-14