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.