Today’s Trading Plan: Seeking Direction

Technical Outlook:

• SPX dropped yet again yesterday effectively wiping out all the gains from Monday’s huge rally. 
• Nonetheless, a breakdown has yet to occur as 2040 is still holding and the bearish double top has yet to confirm. 
• The trading range continues to get even more narrow, with this week establishing a new lower-high and a higher-low. 
• VIX closed the day higher at 15.43. 
• SPY Volume increased yesterday. 
• A drop below 2040 will drastically change the outlook of this market and create a strong bearish environment going forward.
• You still have the lingering potential double top on the 30 minute chart of SPX but overall the price action there is very uncertain and choppy.
• Oil looking to test recent lows once again.
• April has been a very favorable month historical for the Dow – the best, in fact. 
• Plenty of uncertainty remains in the market short-term. Euro and oil are major players in the market’s direction currently.
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• 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:

• Added two new positions yesterday. 
• Covered FOX yesterday at $32.70 for a 0.6% gain. 
• Sold LB yesterday at $93.20 for a 1.8% loss. 
• 20% long / 10% short / 70% cash. 
• I’ll wait to see which direction the market takes today and adjust the portfolio accordingly.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: