Pre-market update:

• Asian markets traded 0.4% higher.
• European markets are trading 0.4% higher. 
• US futures are trading 0.5% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Personal Income and Outlays (8:30), Chicago Fed National Activity Index (8:30), Consumer Sentiment (9:55)

Technical Outlook (SPX):

• Strong day of follow through on Friday, pushing it to fresh all-time highs. 
• At this point, I expect stocks to continue to push higher throughout this shortened trading week, as fund managers continue to chase performance relative to the SPX. 
• Volume was very strong on Friday, on large part to it being options expiration. 
• SPX firmly in overbought territory short-term. 
• Don’t look for a valid reason for why the market is going up this week, just call it a “Santa Rally” and trade along with it. 
• The bears could help their cause out a lot if they can reverse this market and push price back below 1801 on SPX. 
• We broke out of the box mentioned in Friday’s Trading plan. The market is in clear breakout mode. 
• VIX dropped another 2.5% to 13.79.
• 30-minute chart on SPX also has its own impressive breakout look to it. 
• There is absolutely no reason at all to be short this market. 
• VIX bounced back up to 14.15. 
• 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:

• Did not close out any positions on Friday. Kept all of them. 
• Added TRMB at $33.15.
• Will be tightening stops throughout the day on existing positions. 
• Will look to add 1-2 new positions today. 
• Remain long ICE at $219.62, FLS at 72.25, LVS at 76.59, FCS at $12.89, DDD at $81.40, RCL at 44.46 and KEY at 13.12, SWK at 80.84, TRMB at 33.15.
• Long 90% / Cash 10% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: