Pre-market update:

  • Asian markets traded 1.6% higher.
  • European markets are trading 0.6% lower. 
  • US futures are trading 0.7% higher. 

Economic reports due out (all times are eastern): Employment Situation (8:30), Personal Income and Outlays (8:30), Factory Orders (10) 

Technical Outlook (SPX):

  • Yesterday was a breakout day for the markets, pushing and closing above 1700 for the first time ever. 
  • When we crossed 1600, the SPX ran non-stop all the way up to 1686 before pulling back.
  • Very possible we kick start another market rally now that we are  above 1700. 
  • 1676 is a very key level for this market in the case of a sell-off. That would create a new lower-low. 
  • Volume has been much stronger over the past two trading sessions. 
  • SPY has a gap due to yesterday's open price at 169.90 now. 
  • May and July saw strong beginning of the months. Let's see if it continues with August. 
  • So far the new trend-line off of the 6/24 lows connects its first higher-low with Friday's price action. This could change, but that is what we are working with at this point. 
  • VIX remained yesterday at 12.94
  • 30-minute chart continues the upward climb with a new higher-high. 
  • I remain a buyer in this market. The opportunities to swing short are far too unpredictable, choosing to focus on the long side is the best way to manage risk and maximize profits at this juncture. 
  • With the consolidation at the highs, I think it is only a matter of time before we break the 1700 price level .
  • This uptrend looks nearly the same as the one we saw on 4/19 and lasted until 5/19. I'm curious if it will lead to a similar extended pullback as a result. 
  • Markets don't care about the economy. 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 CREE at 73.13 for a 4% gain. 
  • Sold RCI at 40.26 for a 1.3% loss. 
  • Bought BA at 106.64 yesterday. 
  • Current Longs: ASML at 89.63, HRB at 30.19, SJM at 104.63, GOOG at 887.47, WHR at 130.74, XEC at 75.50. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

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