Pre-market upadate (9:00am eastern):
- European markets are trading flat.
- Asian markets traded mixed/flat.
- US Markets are looking at a slightly negative open.
Economic reports due out (all times are eastern): MBA Purchase Applications (7am), Challenger Job-Cut Report (7:30am), ADP Employment Report (8:15am), Jobless Claims (8:30am), ISM Non-Manufacturing Index (10am), EIA Natural Gas Report (10:30am),
Technical Outlook (SPX):
- SPX continued to march higher for a third straight day, and five out of the last six.
- Beginning to look a bit parabolic, if you ask me.
- Breaking through the 1390’s will be difficult as there are plenty of separate resistance levels in that area.
- Safe to assume that volume will be light this week as it was on Monday and Tuesday, as many traders/investors will take the remainder of the week of.
- Volume in general continues to be relatively light during the past month of trading.
- SPX is hitting short-term extremes of being overbought.
- SPX has now made new highs on the uptrend that began on 6/4.
- 30-minute chart continues to highlight the need for a pullback in the short-term.
- Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows.
- Would represent a ‘lower-low’ in the market.
- VIX dropping hard and is now below 17.
My Opinions & Trades:
- Bought NFLX at $70 on Tuesday.
- Bought HD at $51.50 on Tuesday .
- May add an additional 1-2 positions, as well as close out any non-performers.
- If UA continues to struggle, it will be a prime candidate for me to scrap.
- I don’t see really any strong evidence to be short “right-now”. Don’t short the market right now expecting the market to come to its senses. It could be a long painful wait.
- Speaking from experience.
- Still long WNR at $20.51, CMG (bought on Friday) at 378.44, UA (bought Friday) at $93.09 .
- Increasing my stop-loss in WNR to $22.70 locking in 10.7% in gains and providing plenty of wiggle-room for the stock.
Charts:
