Pre-market update:
- Asian markets traded -0.4% lower.
- European markets are trading 0.3% higher.
- US futures are trading 0.1% higher.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), FHFA House Price Index (9), S&P Case-Shiller HPI (9), Consumer Confidence (10), Richmond Fed Manufacturing Index (10, State Street Investor Confidence Index (10)
Technical Outlook (SPX):
- Another respectable sell-off yesterday.
- A confluence of support held up though at the 1700 level which included not just the key milestone, but also the 10-day moving average and the rising trend-line as noted below.
- Volume was no better than average yesterday.
- SPX has come off of its overbought conditions with the three day sell-off.
- A potential head and shoulders pattern forming on the SPX 30-minute chart.
- Huge pop in the VIX yesterday sending it back up into the 14’s.
- SPX gave up the 1709 support level that from a bullish perspective, I would’ve liked to have seen held.
- A 1-2 week period of consolidation at this point would not be surprising considering the price action that we’ve seen after similar run ups this year on the SPX.
- Continue to watch the 10-day moving average, and a break of which that might spur on a minor correction.
- I am continuing to trade to the long side, and for the foreseeable future.
- Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
My Opinions & Trades:
- Sold SLB yesterday at 87.13 for a 5.8% gain.
- Sold EXXI yesterday at 29.29 for a a 6.4% gain.
- Sold OSK at 47.97 yesterday for a 2.3% gain.
- Sold FTNT at 20.87 for a 1.2% gain.
- Sold BAC at 14.32 for a -2.6% loss.
- Added one additional position to the portfolio yesterday as a long.
- Lightened up on the portfolio quite a bit to provide added flexibility for wherever this market might go.
- Currently 20% long / 10% short / 70% cash.
- Current Longs: BIDU at $143.15
- Current Shorts: FITB at 18.42
- I’ll look to add one additional position to the long side today if conditions permit.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
