Pre-market update:

• Asian markets traded 0.4% higher.
• European markets are trading 0.8% higher.
  
• US futures are trading 0.5% higher ahead of the market open. 
  

Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30), PMI Services Flash (9:45), New Home Sales (10), Dallas Fed Manufacturing Survey (10:30)

Technical Outlook (SPX):

• Friday was a cooling off period for the market while consolidating above the previous SPX highs.
• Today’s morning gap up puts the market at the cusp of SPX 2000. May see some profit taking at that number. 
• The five-day moving average represents a perfect trajectory of the market’s direction at the moment. 
• Volume was on par with what I’ve seen out of SPX over the last four days. 
• Overbought and overextended are two words you’ll hear a lot of from people in the coming days. 
• A lot of nontraditional traders are starting to get interested in this stock market which usually starts to show that there is too much “froth” in the market. 
• Still, the market keeps rising, and the trades must still point to the long side as there is little reason to be short the market for any reason at all. 
• Continue to tighten stops and take profits where you can on positions ensuring that you don’t get caught with your pants down if the market suddenly sells-off. 
• Jackson Hole was a non-event on Friday. 
• After an 88 point rally in the last 11 days, SPX 30 minute chart has become extremely stretched. 
• At this point I wouldn’t be surprised to see some profit taking in the market, but yet, the market can always rally much, much more than you could ever expect. 
• 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 one new long position on Friday. 
• Closed out CMI at 144.84 for a 1.4% gain. 
• Remain long AAPL at 95.56, FB at 72.53, ESRX at 71.01, NFLX at $454.91, ETFC at 21.76, CTXS at 69.96
• Will look to add 1 new long position today and also look to close out positions that are extended to the long side. 
• 70% Long / 30% Cash
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: