Pre-market update:

  • Asian markets traded 1.0% higher.
  • European markets are trading 1.0% higher.
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), ICSC-Goldman Store Sales (7:45), Redbook (8:55), Factory Orders (10), Beige Book (2)

Technical Outlook (SPX):

  • Minor dip yesterday, however, the dip buyers came in and supported the market as a result. 
  • Gap ups, like the one being seen in today’s pre-market have regularly been filled in the same trading day, so don’t be surprised if that happens again here. 
  • A wild day on the VIX that saw it initially spike 12% higher, only to finish the day 2.3% higher at 12.25.
  • Volume in SPY continues to increase each of the last three days. 
  • We should see more volume in general as traders come back from summer vacations. 
  • SPX still remains very strong, and gives no reason to begin shorting this market at the moment. 
  • Even with the consolidation the SPX continues to maintain the 5-day moving average. 
  • SPX remains staunchly in overbought territory. 
  • On the weekly SPX broke out of its trading range last week. 
  • 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:

  • Added one additional long position to the portfolio. 
  • Closed out NBL yesterday at 70.67 for a 0.3% loss. 
  • Remain long CTXS at 69.96, STT at 70.99, TJX at $59.65, 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 9-3-14