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Pre-market update (updated 8:30am eastern):

  • European markets are trading mixed but overall +0.3% higher. 
  • Asian markets finished +0.4% higher on the day. 
  • US futures are trading moderately higher ahead of the bell.

Economic reports due out (all times are eastern): Quadruple Witching (Opex). 

Technical Outlook (SPX):

  • Typical gap down, buy-the-dip to finish near break-even kind of day. 
  • One sign that showed me that the bulls are very much still in this market were the automatic buy programs that kicked in at the 10-day moving average.
  • Often times this is the first sign of defense by the bulls in a soft pullback for the market to bounce from. 
  • This pullback has been very healthy for the markets - orderly, low volume, and pulled us off of overbought levels as well as back inside the bollinger bands. 
  • 30-minute chart for SPX still has upward trend intact. 
  • Fed's QE3 launch is going to add a lot of buying power to this market and drive more people out of interest-bearing assets and into equities in search of some kind of return. 
  • Going back years, there really is little in the way of resistance for the markets until it tests 1500.
  • Resistance at 1437 and 1440 was broken with little problem and now becomes support
  • Upward trend-line off of the 6/4 lows has rising support at 1410. 
  • SharePlanner Reversal Indicator confirmed the move higher this past week. 
  • VIX at 14. 
  • One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3
  • If another sell-off were to ensue, watch for a break and close below 1396 for a new lower-low in the market.  

My Opinions & Trades:

  • Sold second 1/2 of GTAT position at $6.67. Overall made 1.6% on the trade. 
  • Stopped out of SHLD at $68.67 for a -4.1% loss. 
  • Bought TMO at $59.91. 
  • Bought LEAP at $6.45. 
  • Current stop-losses have been adjusted across the board. 
  • ALXN stop-loss moved up to $111.00
  • Stop-loss for NLSN at $29.80.
  • Stop-Loss for WYNN increased to $111.50.
  • Stop-Loss for BEAV adjusted to $40.90. 
  • Stop-Loss for IACI moved to $52.25
  • Remain long IACI at $52.59, PNR at $43.85, BEAV at $40.75, WYNN at $107.47, NLSN at $28.70, and ALXN at $102.53
  • Track my portfolio RealTime here. 

Charts:

SP 500 Market Analysis 9-21-12

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ryan1Ryan (@shareplanner) specializes in swing trading strategies and is the founder of SharePlanner which he created to help and teach others on how to trade stocks better using multiple approaches and time frames. Each day you can count on Ryan to provide his trading advice as well as transparency in every trade that he makes. Ryan Mallory resides in Central Florida with a wife of seven years as well as one lively son. More >>

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