Pre-market update:

  • Asian markets traded -0.2% lower.
  • European markets are trading 1.1% higher.
  • US futures are trading 0.2% higher ahead of the market open. 


Economic reports due out (all times are eastern): Challenger Job-Cut Report (7:30), ADP Employment Report (8:15), International Trade (8:30), Jobless Claims (8:30), Productivity & Costs (8:30), ISM Non-Manufacturing INdex (10), EIA Petroleum Status Report (11)

Technical Outlook (SPX):

  • SPX initially broke out of the 7-day trading range yesterday, but like most gap ups it filled the gap, and even sold off a minor bit yesterday. 
  • The action is by no means a show stopper, as technically everything held up just fine. 
  • In fact, this consolidation is healthy and was necessary for the market to ensure that it could continue rallying in the future. 
  • Little to no fear in yesterday’s price action. 
  • Volume was notably off yesterday. 
  • VIX was only up a paltry 0.9% to 12.33. 
  • At the moment there is little to no fear in this market. That can always change, but no major themes in the market that cause problems for it right now. 
  • 30-minute chart shows plenty of consolidation taking place right now. 
  • SPX still remains very strong, and gives no reason to begin shorting this market at the moment. 
  • SPX remains staunchly in overbought territory. 
  • On the weekly SPX broke out of its trading range last week. 
  • 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. 
  • 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 TSLA at $283.05 yesterday for a 7.3% gain. 
  • Did not add any new positions yesterday. 
  • Remain long CTXS at 69.96, STT at 70.99, TJX at $59.65, FB at 75.65.
  • Will look to add 1-2 new long position today. 
  • 40% Long / 60% 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 9-4-14