Today’s Trading Plan: Still Buying the Dips

Technical Outlook:

• Yesterday was a significant test for the bulls as price threatened to give back much of the gains of recent days. Instead the dip buyers came in and returned the market to the green for the day. 
• Price action formed a nice hammer on SPY with a candle shadow that bounce right off of the 10, 20, and 50-day moving averages. 
• VIX, after an initial surge early on, finally dropped off, falling 1.9% to 13.67. 
• Yesterday’s intraday sell-off formed a very nice higher-low on the SPX 30 minute chart. Very possible we add a higher-high to that price pattern at 2108 or higher
• The price moves of late aren’t as as big as we have become used to seeing. The volatility has dropped off significantly. 
• Volume was once again light on SPY yesterday. 
• This is strongest/most bullish market that we’ve seen since early February. 
• Double bottom on the 30 minute chart was confirmed on Friday. 
• Bears are quickly losing their grip on this market – needs to get price back below 2040 whcih is a good ways a way now. 
• The convergence of the 5, 10, 20, and 50-day moving averages is a perfect example of how non-directional this market has been over the course of this year until last week. 
• 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 yesterday.
• Sold BEAV yesterday at 61.34 for a 1% loss. 
• 50% long / 50% cash. 
• I’ll consider adding 1-2 new long positions today dependent on the strength of today’s price action. 
• Remain long: UPRO at 132.12, AAPL at 126.81, ETN at 68.88, FB at 83.32
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: