Today’s Trading Plan: Bulls in Control

Technical Outlook (SPX):

• Additional follow through on Friday that now has the market up 3 out of the past 4 trading sessions. 
• SPX is caught in a rising channel, that has very clear markings as seen in the chart below. A strong rally today, would likely see a struggle to get past 2118. 
• SPX by and large has not been greatly affected by the issues overseas surrounding Greece and their debt. 
• Significant recovery by SPX futures off of the overnight lows. 
• Volume remained steady and well below average last week. 
• T2108 (% of stocks trading above their 40-day moving average) remains technically strong with 64% of all stocks above the moving average.
• VIX continues to drop hard, as it is now below the recent range it previously traded in. Down 4.2% to 14.69. 
• Russell breakout out perfectly above the box range it has been in for over a year now. 
• SPX 30 minute chart continues to trend higher in a very orderly and trending manner. 
• Weekly SPX chart shows a well constructed bullish-flag breakout taking place. 
• Monthly looks equally impressive. 
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Added one new position to the portfolio on Friday. 
• Closed out AEO at $14.61 for a 1.2% loss. 
• Will look to add 1-2 new positions on market strength today. 
• 50% Long / 50% cash. 
• Remain long HON at 102.48, F at 16.12, ADBE at 73.66, MA at 86.29.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: