Pre-market update:

• Asian markets traded 1.0% lower.
• European markets are trading 0.6% higher. 
• US futures are trading flat ahead of the market open. 
  

Economic reports due out (all times are eastern): MBA Purchase Applications (7), EIA Petroleum Status Report (10:30), Treasury Budget (2)

Technical Outlook (SPX):

• Slight pullback on light volume yesterday poses little threat to the markets today. 
• One could make the case, but it is far to early to do so (only be aware of the possibility) of a double top forming on the SPX chart. A close below 1783 would be necessary to confirm the pattern. 
• For the bulls, to break above 1808 would be big for the SPX and would likely see a much larger expansion from there. 
• New all time highs can be achieved above 1813.
• Tapering rumors at next week’s Fed meeting doesn’t seem to be having a profound impact on the market. 
• VIX rose to 13.91. . 
• The trend-line off of the October lows, looks more like the trend has flattened out some rather than reversing course .
• I see very little reason or edge to be short in this market right now. 
• Last week marked the first time in 9 weeks that the SPX finished lower on the week. 
• Markets don’t care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up. 

My Opinions & Trades:

• Sold AGCO at 60.72 for a 2.7% gain. 
• Added one additional position yesterday. 
• Aggressively increasing the stop-losses on my profitable positions. 
• May add 1-2 new positions today but in doing so will look to cut 1-2 long positions already in the portfolio. 
• Current Longs: JAH at 56.50, ADSK at 45.75, LVS at 71.92, CBG at 24.64, CX at 10.95, BIDU at 169.60, BC at 45.99, TWI at 17.30, TRMB at 32.82..
• Long 80% / Cash 20% 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: