Today’s Trading Plan: America Is Rabidly Bullish

Technical Outlook:

• SPX finished lower for the first time after five straight green days. 
• Futures following Friday’s close sunk on the failed coup attempt in Turkey. All those losses were erased with the opening print on Sunday night. 
• 5-day moving average still holding strong on the current market rally. 
• At this point, the market could really benefit from some consolidation, in order to avoid a sharp pullback. 
• SPY volume increased for a second straight day, and came in at slightly above average. 
• SPX 30 minute chart may be starting to see some consolidation on the 30 minute chart. 
• VIX continues to trade lower, and move below key support at 13 – a support level that has held for the better part of two years. 
• T2108 (% of stocks trading above their 40-day moving average) is starting to flat line a bit at 78-79% over the past few days. 
• Oil continues to bounce around over the past 7 trading sessions. Most noticeable on the USO chart. 
• Advancing stocks on a daily basis, compared to declining stocks have not been as strong over the past 2-3 trading sessions. 
• I could easily see a pullback to the 2120 level which was the breakout area for this market, in the coming weeks, without ruining the upside potential of the market going forward. 
• At this point, and with the election ahead, I’d expect the market to keep rallying higher. I don’t expect there to be a rate hike between now and the election. To do so would impact the market and thereby the election. I don’t think the Fed wants that, particularly since Trump has indicated that he would replace Yellen. 
• There is a great deal of bullishness to this market right now despite the prevalent amount of worry. It has been over two years since the market has actually seen a legitimate rally and so it wouldn’t be surprising to see this market continue its current trend higher as shorts are forced to face the new reality of the market. 
• Market is assuming that rate hikes are pretty much off the table for all of 2016. 

My Trades:

• Sold CNI on Friday at $62.45 for a $4.0% profit. 
• Covered RCL on Friday at $69.71 for a 3.9% profit.
• Sold NFLX on Friday at $98.37 for a 2.4% profit.
• Sold USO on Friday at 10.96 for a 1.4% profit.  
• Added one new long position to the portfolio on Friday. 
• May add 1-2 new swing-trades to the portfolio today. 
• Currently 20% Long / 80% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: