Today's Trading Plan: News Driven Market
Ryan Mallory | Jul 30, 2014 11:15AM ET
- Asian markets traded 0.2% higher.
- European markets are trading 0.1% higher.
- US futures are trading 0.4% higher ahead of the market open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7), ADP Employment Report (8:15), GDP (8:30), EIA Petroleum Status Report (10:30), FOMC Meeting Announcement (2)
- Strong sell-off yesterday on SPX resulting in price coming back down to the current trend-line that begun off of the 4/14 lows.
- A close today below 1956 would push price below the box of consolidation and would be a bearish signal for the market.
- Indices are showing a strong gap up this morning, however, many gaps of late, in both directions have quickly been filled.
- FOMC Meeting today, which means the market will likely wait until after the statement is out at 2pm eastern before making any additional major moves.
- Also remember that the initial response following the FOMC announcement is usually a fake move. Some times there are as many as 2-3 fake moves that follow an FOMC announcement.
- SPX managed to lose the 10-day and 20-day moving averages. The last time the 20-day moving average was lost, it quickly rebounded in a very strong manner the following day.
- Volume was about average.
- VIX was strong yesterday closing at 13.28.
- SPX remains contained within the monthly range.
- The notion that we could push through 2000 on SPX, is being met with selling jitters.
- 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
- Closed out BKD at $35.45 for a 0.5% gain.
- Closed out FB at 73.68 for a 1.7% loss.
- Will look to add 1-3 new long positions today.
- Remain long EBAY at 51.75, MS at 32.88, MRO at 40.16, GOOG at 585.61
- 40% Long / 60% Cash
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