Today’s Trading Plan: Sustaining the Trend

Technical Outlook:

• Very low volume day yesterday on the SPY and SPX traded within an eight point range. 
• All key support levels were held up yesterday, and the 20-day moving average was tested and held as well. 
• The key for the bulls moving forward is to push through the declining resistance off of the May highs. The rejection there is what led to the sell-off last week. This is my biggest concern going forward. Once that is broken, I believe that new all time highs for SPX will be right around corner. 
• VIX was a non-issue yesterday as it spiked momentarily but closed only 0.8% higher at 16.98. 
• SPX 30 minute chart shows a nice uptrend with higher highs and higher lows that started forming this week, with a bull flag at those rally highs. Very bullish chart right now. 
• Following the eight day sell-off that ended on Friday, SPX could very sell be setting up for a notable rally that takes price beyond the current all-time highs. It is the season for such a rally. 
• For twelve years straight, the market over the course of the last 30 trading days has yielded a net positive gain, and reinforcing the concept of the “Santa Rally”.
• A rate hike is expected out of December’s Fed meeting. However, I still would not be surprised if the Fed backed out of raising rates yet again. They’ve been doing just that for years now. 

My Trades:

• Added one new long position to the portfolio yesterday. 
• Did not close out any positions yesterday. 
• Will consider adding one new long position to the portfolio today, while also managing the profits on existing positions. 
• 80% Long / 20% Cash
• Remain long: FDX at $157.91, MSFT at $53.88, FB at $104.85, TSO at $113.98, BIDU at $199.21 and three additional trades.
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Chart for SPX: