Technical Outlook:
- FOMC Statement came out yesterday and was more dovish than the previous statement, however, the market failed to rally behind it.
- Today’s open threatens the current uptrend that is in place. A move below 2089 would be very problematic today.
- Russell index closed slightly below the rising trend-line off of the October lows.
- VIX popped 8% yesterday to close at 13.39.
- T2108 (% of stocks trading below their 40-day moving average) showed increased weakness by dropping 9.1% to 56%.
- SPX 30 min chart showed a series of lower-highs over the past few days of trading.
- SPY volume was noticeably higher and above average yesterday. Typical to see that on FOMC days.
- I think you do have to be come a bit more weary here with the behavior of the market at its all-time highs. There isn’t much momentum flowing into stocks here.
- Bulls need, in the near-term hold the lows of yesterday at 2094 with 2089 representing a break of the rising trend-line off of the October lows.
- 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 CRM yesterday at $78.20 for a 15.1% gain.
- Closed out ORCL yesterday at 44.60 for a 0.9% gain.
- Did not add any new positions yesterday.
- 20% long / 80% cash.
- I’ll consider adding 1-2 new positions today dependent on the strength of today’s price action.
- Remain long: CAT at 85.26, AER at 46.92.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
