Pre-market update:

• Asian markets traded 0.7% higher. 
• European markets are trading 1.0% higher. 
• US futures are trading flat ahead of the bell.  
  

Economic reports due out (all times are eastern): Empire State Manufacturing Survey (8:30), Industrial Production (9:15)

Technical Outlook (SPX):

• A huge gap up to occur at the open of 1% and will send the market up over 1700. All-time highs are in play today. 
• Nice Consolidation that closed out last week, and today’s strength breaks us out over 3-day consolidation. 
• Yellen, with Larry Summers taking himself out of consideration for Fed chairman, becomes the clear-cut favorite at this point. Markets like the development as evident by the large gap up this morning. 
• Volume has tapered off over the last three days but remains strong overall for the month of August. 
• Assuming the SPX can hold the opening gap up and the 1700 level, the only remaining level or resistance is 1709. Break and close above that level and there is no resistance overhead – only all-time highs. 
• SPX is far and away from any near term support in the market. 1657 is the nearest level of support. 
• I am continuing to trade to the long side, and for the foreseeable future. 
• Watch the VIX during the first hour of trading for any clues that this market wants to give up its intraday gains. 
• Syria is becoming less of a threat for for the markets, particularly now that is seems improbable the United States with stage an attack on the country. 
• Why anyone wouldn’t expect these types of bounces from the market at this point is beyond me. As long as the fed is involved in this market, you should expect the market to continuously bounce higher. 
• SPX back firmly in overbought status short-term. 
• VIX back in the 14’s and will likely be in the 13’s by close of today at least. 
• 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. 

My Opinions & Trades:

• Added SPWR to the portfolio on Friday at 23.51. 
• PKG added on Thursday is gapping up over 12% in the pre-market. 
• Closed/covered MON at 104.82 for a 3.3% loss. 
• Currently 80% long / 20% cash.  
• Current Longs: SLB at 82.34, URS at 50.65, JCI at 41.66, OSK at 46.91, EXXI at 27.54, FTNT at 20.63, PKG at 54.42. 
  
• Will look to add 1-2 additional positions to the portfolio today. 
• Must wait until after the first hour of trading to gauge the strength of the gap up. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: