Today’s Trading Plan: Volatility Dropping

Technical Outlook:

• Strong follow through on Friday after the breakout and short-term higher-high was established last Thursday. 
• Downtrend off of the March highs is where price finds itself right on this morning. 
• This is strongest/most bullish market that we’ve seen since early February. 
• Double bottom on the 30 minute chart was confirmed on Friday. 
• VIX is collapsing as it dropped below support off of the trend from the July lows of last year and is now sitting at 12.58. 
• One possible red flag on SPY right now is the slightly declining volume over each of the last three days. 
• SPX double bottom close to confirming on the daily – needs to get above 2108. 
• 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. 
• 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 one new position on Friday. 
• Did not close out any positions Friday. 
• 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: