Today's Trading Plan: Keeps Bouncing Off Of The Twenty
Ryan Mallory | Jul 16, 2014 11:20AM ET
- Asian markets traded 0.1% higher.
- European markets are trading 1.4% lower.
- US futures are trading 0.4% higher ahead of the market open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7), PPI-FD (8:30), Treasury International Capital (9), Industrial Production (9:15), Atlanta Fed Business Inflation Expectations (10), Housing Market Index (10), Janet Yellen Speaks, EIA Petroleum Status Report (10:30), Beige Book (2)
- Dip buyers came in yesterday and kept the market from selling off - instead creating a solid doji candle to close out the session for SPX.
- As before, the 20-day moving average keeps coming up strong for the bulls offering support and an area where the bulls can bounce hard off of.
- Volume was very strong yesterday, despite only selling off a small amount.
- Since 7/1, SPX has essentially be consolidating at the highs. Not at all surprising, and probably necessary.
- The number one goal of the bears at this point should be to get price below the lows of last Thursday at 1952. Next stop would be creating a short-term lower-low at 1944.
- SPX heading towards short-term overbought again.
- VIX saw a minor increase to 11.96 yesterday.
- 30-minute chart of SPX shows a choppy uptrend in play.
- This market still leans bullish, but needs to break out to new all-time highs at some point this week if it wants to keep the momentum on its side.
- The dip buying has also been in conjunction with holding the upward trend-line off of the 6/12 lows.
- SPX hasn't seen a move of more than 1% in either direction since April.
- 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:/h3
- Sold BKD at 34.14 yesterday for a 1% gain.
- Sold GOOG at 582.86 for a 0.4% gain.
- Added two new additional positions yesterday.
- Will look to add 1-2 new positions today.
- Remain long AXL at $19.73, WDC at $94.87, KATE at $38.10, VALE at 14.01.
- 60% Long / 40% Cash
Get The News You Want
Original Post
/h2
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.