Today’s Trading Plan: Quiet Ahead of the Fireworks

Technical Outlook:

• SPX had day 2 of its bounce, and failed to add to its gains from the opening bell for a second straight day. Use the SPY chart as a reference. 
• Volume on SPY was strong yesterday but has tapered off for a second straight day. 
• SPX looking at a muted open today after Greece has caused massive gaps in previous days. Markets are waiting for Sunday’s referendum to play out. 
• VIX saw a respectable drop yesterday with a 11.7% drop down to 16.09. Well above though recent readings. 
• Massive double top on the 30 minute chart with the recent price bounce below the neckline. 
• Non-Farm Payrolls, having minimal effect on the market. 
• For the bears today, the key remains to get price back down below the 200-day moving average on a closing basis. 
• For the bulls, it is to make Monday look like it never happened by wiping out those losses and breaking above the Monday highs into the gap on the SPY chart. 
• The headline risk is extremely volatile at the moment, and conditions are rapidly changing at the whims and discretion of politicians seeking to hold on to power. 
• Watch 2039 for a break below the March lows to fuel additional bearishness in the market. 
• 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:

• Covered my short position in MAR yesterday at 74.85 for a 2.0% gain. 
• Added one additional short position yesterday. 
• 30% short / 70% cash. 
• Remain short MMM at 154.30, JAH at 52.31.
• 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: