Today’s Trading Plan: Global Terrorism Concerning the Market

Technical Outlook:

• SPX was off to a good start yesterday, and looked like it may string two consecutive days of gains together until a bomb scare at a stadium in Germany resulted in the market selling off all the day’s gains and then some. 
• The sell-off happened at the 200-day moving average, and that now becomes an even greater point of interest and resistance going forward. 
• A break above the 20-day moving average would put SPX back into the upper-half of the Bollinger Band. 
• SPY saw a slight increase in the volume from the day prior and was just a shade above average volume levels of late. 
• VIX rallied 3.7% yesterday to 18.84. Still hovering near the 20 mark. 
• I would consider this to be a critical day for the bulls. The candle from yesterday needs to be nullified and the market needs to break the highs of yesterday, if it wants the bulls to regain its confidence in this market to rally into the year end. 
• Getting past the declining resistance off of the May highs will be absolutely key to the sustainability of this of this market. 
• A rate hike is expected out of December’s Fed meeting. However, I still would not be surprised if the Fed backed out of raising rates yet again. They’ve been doing just that for years now. 

My Trades:

• Added two new long positions to the portfolio yesterday.  
• Will look to add 1-2 new long positions today if this market bounce holds.
• Sold UPRO yesterday at $63.83 for a 3% profit. 
• Sold GE yesterday at $30.07 for a 1% loss. 
• 50% Long / 50% Cash
• Remain long: FDX at $157.91, MSFT at $53.88, GLW at 18.11.
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Chart for SPX: