Pre-market update:

• Asian markets traded 0.2% lower.
• European markets are trading 0.6% lower. 
• US futures are trading 0.3% lower ahead of the market open. 
  

Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Redbook (8:55), Wholesale Trade (10)

Technical Outlook (SPX):

• Nice follow through yesterday as it approaches new all time highs above 1813. 
• If a sell-off today occurs 1794 must hold or you have a lower-high and lower-low in place. 
• Rumors are in full swing of tapering being announced at next week’s Fed meeting which is a result of some of the selling we are seeing early on this morning. 
• Volume remained average over the last two trading sessions but much lower from what we saw last week. 
• VIX dropped back down to 13.49. 
• The head and shoulders pattern on the SPX 30-minute chart looks dead at thsi point. 
• The trend-line off of the October lows, looks more like the trend has flattened out some rather than reversing course .
• I see very little reason or edge to be short in this market right now. 
• Last week marked the first time in 9 weeks that the SPX finished lower on the week. 
• 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:

• Sold CX at 11.54 yesterfday for a 5.4% gain.  
• Added BC at 45.99 and one other position yesterday. 
• May add 1-2 new positions today but in doing so will look to cut 1-2 long positions already in the portfolio. 
• Current Longs: JAH at 56.50, ADSK at 45.75, LVS at 71.92, CBG at 24.64, CX at 10.95, BIDU 169.60.
• Long 80% / Cash 20% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: