Today’s Trading Plan: Jobs Shaking Things Up

Technical Outlook:

• SPX tested last Friday’s highs and failed to break through, instead resulting in selling thereafter. Ultimately the trading session resulted in sideways price action. 
• The bulls again exhibited their inability to do anything with price above 2100, but unwillingness to allow price to fall from it either. 
• The end of day ramp job continues as it has for months now to be a massive problem for the bears in sustaining any legitimate price action with the ramp happening consistently in the final hour of trading. 
• Employment report will shape the price action today. With a massive beat of expectations, the market is looking at a very large gap higher. 
• SPY volume dropped off for a second consecutive day. Volume was also well below average for a second straight day. 
• SPX on the 30 minute chart is struggling mightily with the 2100-2110 price range. 
• VIX fell for the 7th day in the last 8 trading sessions, following the Brexit vote. The volatility has completely vanished. 
• The 10, 20, and 50-day moving averages are converging together to provide a legitimate level of support between 2074 and 2079. 
• In general Q3 doesn’t ten to be a very good quarter historically for stocks. In recent past that has also been the case. Last August, there was an extreme sell-off. 
• Market is assuming that rate hikes are pretty much off the table for all of 2016. 

My Trades:

• Added two new short positions to the portfolio yesterday. 
• Closed out IR yesterday at 64.51 for a 2% loss. 
• Hesitant to add new long positions so long as the bulls refuse to push through 2100 and beyond. 
• Best risk/reward currently is currently to the downside. 
• Currently 40% Short / 60% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: