• SP 500 Market Analysis 10-31-14

Pre-market update:

  • Asian markets traded 3.5% higher.
  • European markets are trading 1.9% higher.
  • US futures are trading 1.0% lower ahead of the market open. 


Economic reports due out (all times are eastern): Personal Income and Outlays (8:30), Employment Cost Index (8:30), Chicago PMI (9:45), Consumer Sentiment (9:55)

Technical Outlook (SPX):

  • Massive gap up this morning after news of Japan’s announcement of starting up their own version of QE. 
  • All-time highs expected could be in play today. New closing highs definitely in play. 
  • I would definitely be careful with this gap up this morning. Seems like it could easily be used for booking profits. 
  • This undoubtedly one of the greatest V-Shaped bounces this market has ever seen. Nearly 200 points since 10/15. 
  • The 5-day moving average has been an excellent rising support level for SPX.
  • SPX 30-minute chart remains very healthy with SPX continuing with its series of higher-highs and higher-lows. 
  • The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 


My Trades:

  • Sold AAPL at 106.56 for a 4.8% gain. 
  • Sold BLMN at $18.92 for a 2.2% gain. 
  • Added two additional long position to the portfolio. 
  • Will consider adding 1-2 new long positions today.
  • Remain long SH at 23.41, RAX at 35.93, INFY at 62.56, MS at 34.40
  • 50% long / 50% cash. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 10-31-14

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