Pre-market update (updated 8:30am eastern):
- European markets are trading 0.6% higher.
- Asian markets were mixed in their trading.
- US futures are slightly higher ahead of the bell.
Economic reports due out (all times are eastern): Dallas Fed Manufacturing Survey (10:30am)
Technical Outlook (SPX):
- Hard bounce for the market on Friday, and in particular the SPY bounced right off of the 20-day moving average and created a HUGE bullish engulfing pattern.
- Also managed to reclaim the 10-day moving average.
- Going forward SPX needs to close above 1422 and take out 1426 recent intraday highs.
- Volume remains at ridiculously low levels – even more so on Friday.
- We are well-off of overbought levels – which gives this market plenty of room to run.
- SharePlanner Reversal Indicator received a bullish confirmation signal.
- Support above the 1405 level was recaptured on Friday.
- With Friday’s bounce, the pullback we saw for most of last week should be presumed over at this point and that the a new higher-high should be established.
- When we tested the 10-day moving average Thursday, unlike previous opportunities, bulls showed no desire to buy the dip.
- VIX is currently sitting at 15.
- One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3
- If another sell-off were to ensue, watch for a break and close below 1354 for a new lower-low in the market.
My Opinions & Trades:
- On Friday I bought LTD at $48.47.
- On Friday I bought FBHS at $24.54.
- BRO is on the cusp of being closed out.
- Any new long positions will likely result in me closing out an existing long position.
- Current stop-losses have been adjusted across the board.
- Stop-loss in AMZN moved up to $237.90.
- HE Short stop-loss has been has been tightened to 27.40.
- BRO Short stop-loss has been has been tightened to 25.85.
- ALXN stop-loss moved up to $100.98
- Remain long SAFM at $40.55, ALXN at $102.53, LXP at $9.21, and AMZN at $233.90. Short BRO at $25.65, HE at $28.45.
- Track my portfolio RealTime here.