Today’s Trading Plan: Yesterday’s Trash is Today’s Treasure

Technical Outlook:

• Another cataclysmic day of trading for the market as it dropped below 1900 and closed at 1867. A 235 point drop from the close on the prior Monday on the S&P 500. 
• SPY saw its highest volume levels yesterday in years. It was 4 times its typical average. 
• The VIX registered an intraday reading that was the highest that has been seen since the March 2009 lows. At one point it was over 53. 
• T2108 (% of stocks trading above the 40-day moving average, registered its lowest reading since the October 2014 lows of 7%. These are the levels that typical can create, at the very least, a short-term bottom. 
• Today is looking at a gap up of nearly 60 points. Which is honestly an insane level to reach in the premarket, but considering the previous gap downs, it isn’t all that unexpected. 
• The current market conditions makes it very difficult to swing-trade positions overnight simply because the risk cannot be contained with the trade. That doesn’t mean that I won’t consider holding a position overnight, but it has to be aligning well technically. 
• SPX 30 minute chart suggests you may have the possibility for a double bottom with the morning strength we are seeing in the futures market. 
• It stands to reason at this point that the Fed will not raise rats in September – possibly not even this year.

My Trades:

• Did not add any swing positions yesterday.
• Did not close out any swing positions yesterday. 
• 100% cash
• With the market gapping up and down astronomical amounts each and every day, it is literally impossible to control the overnight risk that the market presents each day. As a result, I have to remain patient until a better scenario can present itself for me to swing-trade in. 
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: