• SP 500 Market Analysis 10-23-13

Pre-market update:

  • Asian markets traded 1.2% lower.
  • European markets are trading 0.6% lower. 
  • US futures are trading 0.5% lower ahead of the market open. 


Economic reports due out (all times are eastern): MBA Purchase Applications (7), Import and Export Prices (8:30), FHFA House Price Index (9), EIA Petroleum Status Report (10:30)

Technical Outlook (SPX):

  • Yes, that now makes it 9 out of the last 10 trading sessions the SPX has finished in positive territory, and in this case at all time highs. 
  • SPX looks to pullback some today, not because the market is experiencing a game-changer of an event but because it needs to. 10-15 points down today wouldn’t surprise me at all. 
  • Volume picked up yesterday as well and has been picking up overall lately as well. 
  • The biggest argument for the market to pullback here is simply because it is overextended. 
  • I’ve added some short exposure to the portfolio to protect my downside. 
  • VIX continues to show some sort of base around 13. 
  • 30-minute chart of SPX shows a perfectly in place uptrend. 
  • Very little in the way of head-winds for the market as Syria has left the spot-light, shut-downs, debt-ceiling are over with for now, and the most dovish Fed chairman poised to take the helm. 
  • Bulls need to continue to hold the rising trend-line off the November 2012 lows which currently rests at 1698. 
  • 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 HTZ yesterday as a short at 23.63. 
  • No other positions from the portfolio below was closed out yesterday. 
  • I am primarily focused on trading to the long side going forward. Will use today’s dip to pick up some new stocks. 
  • Currently 30% long / 20% short / 50% cash.  
  • Current Longs: LYV at 18.80, CMI at 133.25, MWE at 70.20. 
  • Current Shorts: AXL at 19.08, HTZ at 23.63.
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 10-23-13

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