Pre-market update:

• Asian markets traded 0.2% higher.
• European markets are trading 1.1% lower.
• US futures are trading 0.2% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Employment Situation (8:30), International Trade (8:30), Consumer Credit (3pm)

Technical Outlook (SPX):

• Despite a beat on the employment number, the markets seems to be less than thrilled. 
• Perhaps we could see a “sell-the-news” reaction to the employment number considering how much we have run over the past three days. 
• Yesterday’s price action was sluggish, and exhibited qualities of a tired market. 
• I actually added a short position to the portfolio just as a way to remain flexible should we see additional downside action out of the market. 
• I would continue to urge traders to watch the 10-day moving average as a way to gauge market sentiment going forward. It has acted as strong rising support of late. 
• Considering that we’ve seen the S&P 500 rally over 140 points in the past month, there is plenty of reason to be be very guarded in this market at this point. 
• Continue to trade long, but do it with eyes wide open know that a period of pullback could be on the horizon. 
• We remain extremely overbought but that can always go on for longer than we expect. 
• On the SPY you have a huge gap now that needs to be filled at some point from 3/4 – there is also the gap up from 2/7 that has gone unfilled as well. 
• The biggest technical support level is the strength SPX found from the trend line that started off of the August ’13 lows. 
• The Market doesn’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:

• Closed out DOW at 49.85 for a 5% gain. 
• Closed out MOS at 50.07 for a 2.8% gain.
• Closed out BX at 34.46 for a 2.9% gain. 
• Added 1 new long position yesterday. 
• Added 1 new short position yesterday.
• Remain long PH at 119.24, GT at 26.64, CTSH at 104.19, AGCO at 52.75, BX at 33.50. 
• Will look to add 1-2 new additional positions today. 
• Long 50% / Short 10% / Cash 40% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: