Today’s Trading Plan: Flirting with All-Time Highs

Technical Outlook:

• SPX finally broke above the descending trend-line off of the May highs, and in the process created a higher-high in the market for the first time, since those May highs were established. 
• Last two days have seen some skittishness from investors as market sits just below all-time highs. 
• 5-day moving average has offered solid support for SPX on the current rally. 
• The VIX indicator, that I have been heavily focused on of late, is still holding that 12.00 level. As noted in previous trading plans, this has been the area where all the market reversals have occurred in 2015. . 
• After a closing of almost 20 on 7/9, it only took 5 days for VIX to get back down to 12 which is where it has been ever since. 
• Until we see price expansion beyond the previous all-time highs, the market should still be considered range bound and the concerns about a reversal remains very, very possible. 
• T2108 (% of stocks trading below the 40-day moving average) has traded lower 3 of the last 4 days, currently sitting at 39%, which is 4% lower from the day prior. 
• What I am seeing a lot of right now are large cap, big names like FB, AAPL, AMZN and GOOG running hard and propelling the market higher, while other stocks are still struggling
• Seven of the past eight trading sessions has resulted in a move higher. Some consolidation here wouldn’t at all be surprising. 
• Volume on the SPY continues to deteriorate. Common during a market melt-up. 
• The market doesn’t care about the economy nor earnings. That is not what is driving it. The market cares about what the Fed is doing to keep equities propped up. 

My Trades:

• Did not close any of my positions yesterday. 
• Added one new long position yesterday. 
• 30% Long / 70% cash. 
• Remain long: TRIP at 91.32, COST at 144.57.
• Will look to add 1-2 new positions today to the portfolio. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: