Today's Trading Plan: Mixed Feelings
Ryan Mallory | Sep 23, 2013 10:13AM ET
- Asian markets traded -0.4% lower.
- European markets are trading -0.5% lower.
- US futures are trading -0.2% lower.
Chicago Fed National Activity Index (8:30), PMI Manufacturing Index Flash (8:58)
Technical Outlook (SPX)
- Heavy sell-off on Friday giving up much of the gains from Wednesday's FOMC gains.
- Key support at 1709 held.
- At this point the last two days doesn't worry me - it was more necessary than anything considering the fact that the SPX rallied non-stop from 1627 at the end of August all the way up to 1729. A 20 point pullback isn't at all concerning.
- Volume over the last 3 days have been much stronger than what we saw previously.
- Despite the SPX being heavily down, the VIX managed to still drop nonetheless, though a lot of that has to do with triple witching on Friday (Options Expiration).
- A nice healthy pullback on the 30-min chart of the SPX on Friday.
- Apple is boosting the Nasdaq in the early going but little effect on the SPX with expected revenues at the high end of estimates.
- A 1-2 week period of consolidation at this point would not be surprising considering the price action that we've seen after similar run ups this year on the SPX.
- Continue to watch the 10-day moving average, and a break of which that might spur on a minor correction.
- 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.
- Added one new position to the portfolio on Friday.
- Did not close any positions on Friday.
- Tightened the stops on a majority of my positions to lock in profits.
- Currently 70% long / 10% short / 20% cash.
- Current Longs: SLB at 82.34, OSK at 46.91, EXXI at 27.54, FTNT at 20.63, BIDU at $143.15, BAC at 14.71.
- I'll look to add one additional position to the long side today if conditions permit.
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