Today’s Trading Plan: Forging Ahead

Technical Outlook:

• Massive rally off of the lows yesterday, when a continuation back towards the February lows appeared imminent. 
• SPX managed to recapture the 5-day moving average and now sets up for a test of 1947 and the 50-day moving average, both of which have converged together. 
• Yesterday’s morning sell-off tested and held the 10 and 20-day moving average (which also had a bullish crossover yesterday).
• Volume came in much stronger than anything seen since 2/11 but still a shade below average volume levels.
• After an early morning pop, VIX gave up all of its gains and ultimately dropped 1.2% down to 20.72. 
• SPX 30 minute chart is a bit mangled as it put in a lower-low and will most definitely need to break Monday’s highs in order to avoid establishing a lower-high. 
• Also on the 30 minute, the possibility exists that a head and shoulders pattern is forming, but the bears will have to avoid any additional rallies going forward. 
• T2108 (% of stocks trading above their 40-day moving average) closed at its highest level since 12/1/15 at 48. 
• Oil setting up for a re-test of the downtrend off the November highs. 
• Insane price movements every day being created by computer generated trading (HFT’s) in a highly volatile market marked with enormous headline risk. 

My Trades:

• Added two new long positions yesterday. 
• Covered SPY at $190.65 for a 1.1% gain. 
• Sold NFLX at $88.30 for a 2.0% loss. 
• Sold DIS at $94.00 for a 2.5% loss. 
• Currently Long UPRO at at $49.99, R at $55.61
• Currently 20% Long, 80% Cash
• Will look to add 1-2 new positions to the portfolio today if the market can continue the rally off of the lows from yesterday. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: