Pre-market update:

  • Asian markets traded 1.2% higher.
  • European markets are trading 0.6% higher. 
  • US futures are trading mixed ahead of the market open. 


Economic reports due out (all times are eastern): International Trade (8:30), Jobless Claims (8:30), Productivity and Costs (8:30), Janet Yellen Speaks (10), EIA Natural Gas Report (10:30), EIA Petroleum Status Report (11)

Technical Outlook (SPX):

  • Huge breakout yesterday pushing above and beyond 1775 to new all-time highs. 
  • Also a bullish engulfing candle pattern the past two days. 
  • This also goes without mentioning the move came on the heels of respectable gap down in the SPX yesterday which obviously was wiped out. 
  • The break to new highs was important and sets a strong bullish tone for the markets going forward. 
  • We also bounced off of the 20-day moving average yesterday which continues to provide solid support for the markets. 
  • Watch CSCO and the effects it has on the market today. It is weighing heavily on the Nasdaq and plenty of tech stocks individually. 
  • Volume was average yesterday. 
  • SPX back into overbought territory. 
  • Support will be the rising 20-day moving average as the bulls continue to buy the dip off of it. 
  • VIX dropped to 12.52 yesterday. 
  • A confirmed inverse head and shoulders pattern on the 30-minute SPX chart. 
  • 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 GES at 33.97 for a 7.7% gain.
  • Covered AMZN at 357.94 for a 1.54% loss.
  • Sold CTXS at 58.96 for a 3% loss. 
  • Added two new longs yesterday.
  • Will look to add 1-2 new positions today as long as SPX can stay above 1740. 
  • Wait at least an hour after the market opens before considering a new position today. 
  • Currently 80% long / 20% cash.  
  • Current Longs: ALKS at 35.49, CHS at 17.30, MOS at 47.77, PAY at 24.97, GPC at 81.40, LVS at 71.12.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 11-12-13