Pre-market update:

  • Asian markets traded 0.5% lower.
  • European markets are trading 0.4% higher. 
  • US futures are trading 0.4% higher ahead of the market open. 


Economic reports due out (all times are eastern): Gallup Consumer Spending Measure (8:30), Factory Orders (10)

Technical Outlook (SPX):

  • Friday was a pivotal day for the markets and the bulls came through shining like champs. 
  • The 10-day moving average had to be broken for the bears to succeed, and the bulls managed to buy the dip and close above the MA and in the green on the day. 
  • It’s a strong indication that this market still wants to move higher in the coming days. 
  • Volume was strong as well and the first time we’ve seen that on an up-day since 10/22. 
  • Rising support was also held perfectly and marked the intraday bounce on Friday. 
  • SPX actually trying to come off of overbought market conditions. 
  • If the bears are going to control this market, it needs to take out the 1740 level. 
  • 30-minute chart on the SPX is now forming a bull-flag. 
  • 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:

  • Closed/covered HLF at 62.68 for a 5.5% gain. 
  • Closed/covered FFIV at 79.20 for a 4.8% gain. 
  • Closed/covered HOG at 64.72 for a -0.7% loss. 
  • Added ALKS at 35.62. 
  • Currently 10% long / 90% cash.  
  • Current Longs: ALKS at 35.62.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 11-4-13