Trading Plan for June 29, 2012

Technical Outlook (SPX):

• SPX made a strong recovery yesterday into the close, eliminating much of the weakness from earlier in the day. 
• Today the market is experiencing additional strength off of positives out of Europe. 
• A close above 1358-60 would be huge for market bulls. Would confirm that the upward trend is still intact and in full-force. 
• Early morning strength puts us above 1335 and outside of the consolidated price range from the past 5 days. 
• Volume continues to remain relatively light. 
• Could see a lot of window dressing with today being the last trading day of the second quarter. 
• Today’s strength puts the market back above the 10 & 50-day moving averages. 
• Below 1306-1308 price level, will nullify the current rally off of the 6/4 lows. 
  • Would represent a ‘lower-low’ in the market. 
• Bulls have in place a bullish island reversal on the SPY chart, which is very similar to the one that we put in on 6/1-6/5 and rallied thereafter for a two-week period. 
• VIX just a shade below 20.

My Opinions & Trades:

• I closed out the majority of my positions yesterday. 
• Covered MOS at $53.91 from $53.07 for a -1.6% loss. 
• Covered ABC at $38.75 from $37.58 for a -3.4% loss. 
• Day-traded SLV for a -0.9% loss. 
• Sold AMZN at $221.44 from $221.60 for a -0.1% loss. 
• Sold AUTH at $4.20 from $4.13 for a 1.7% gain. 
• Still long WNR at $20.51. 
• After the market calms down from the initial burst higher, I’ll begin looking to add 1-3 new positions ot the portfolio. 

Charts: