Pre-market update:
- Asian markets traded 1.5% higher.
- European markets are trading 1.2% higher.
- US futures are trading flat.
Economic reports due out (all times are eastern): Jobless Claims (8:30), Current Account (8:30), Existing Home Sales (10), Philadelphia Fed Survey (10), Leading Indicators (10), EIA Natural Gas Report
Technical Outlook (SPX):
- Yesterday was one of the most insane pops higher on an FOMC statement that I’ve ever seen. There were no multiple moves as there had been historically. it went almost 28 points higher in minutes and never looked back.
- At this point, one has to consider the ‘easy money’ as having been made until we get some kind of minor pullback, even if it is only 10-20 points in total. It won’t get easier than the opportunity we’ve had from late August until now.
- So be careful adding additional exposure to your portfolio, or at the very least, don’t go chasing profits.
- 1709 is important for the bulls to hold and the bears to break. It would bring us back underneath the prior all-time highs.
- No resistance overhead to note.
- Continue to watch the 10-day moving average, and a break of which that might spur on a minor correction.
- Volume popped higher yesterday.
- A bearish divergence in the VIX as we are no where near recent lows despite hitting all-time highs. We are currently at 13.59. Back on 8/3 we were at 11.83.
- I am continuing to trade to the long side, and for the foreseeable future.
- SPX back firmly in overbought status short-term.
- 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:
- Added one new long position yesterday.
- Added one new additional short yesterday.
- Closed out JCI yesterday at 41.92 for a 0.6% gain.
- Covered TIF at 80.17 for a 1.9% loss.
- Currently 60% long / 10% short / 40% cash.
- Current Longs: SLB at 82.34, OSK at 46.91, EXXI at 27.54, FTNT at 20.63, BIDU at $143.15
- I’ll look to add one additional position to the long side today.
- Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone
Chart for SPX:
