Pre-market update:

• Asian markets traded 0.8% higher.
• European markets are trading 0.3% higher. 
• US futures are trading flat ahead of the market open. 
  

Economic reports due out (all times are eastern): None

Technical Outlook (SPX):

• Huge bounce and recovery by the bulls on Friday and particularly off of the 20-day moving average which should be a major factor going forward. 
• Volume was strong on the rally and nearly matched the previous day’s sell-off volume. 
• The 10-day moving average going forward becomes less of a factor due to recent breaks. 
• It is key for the SPX to break to new highs in the next 1-3 days otherwise, Friday’s move becomes more of a dead cat bounce. 
• Volume will be extremely light today as it is Veteran’s Day. Last year volume was non-existent. 
• Going forward the key price level for support that must be held is 1740. No reason to be short until that price level is breached. 
• SPX well off of overbought levels. 
• 30-minute chart of SPX is back to consolidation patterns. 
• VIX dropped back to 12.90.
• Don’t count out the dip-buyers. 
• 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:

• Existing positions in portfolio continue to trade well with no reason to sell-out of them. 
• Bought LYV at 18.08 on Friday. 
• Bought MOS at 47.77 on Friday.
• Will look to add 1-2 new positions today as long as SPX can stay above 1740. 
• Wait at least an hour after the market opens before considering a new position today. 
• Currently 70% long / 30% cash.  
• Current Longs: ALKS at 35.49, GES at 31.55, CHS at 17.30 and JOY at 57.36, JWN at 60.66, LYV at 18.08, MOS at 47.77
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: