Trading Plan for September 12, 2012

Pre-market update (updated 8:30am eastern):

• European markets are trading mixed but 0.3% higher. . 
• Asian markets finished 1.4% higher.
• US futures are trading moderately higher ahead of the bell. 

Economic reports due out (all times are eastern): FOMC Meeting Begins, MBA Purchase Applications (7am), Import and Export Prices (8:30am), Wholesale Trade (10am), EIA Petroleum Status Report (10:30am)

Technical Outlook (SPX):

• Nice recovery yesterday after the previous day’s sell-off. 
• Creates somewhat of a mini bull-flag pattern on the daily SPX. 
• Volume seems to be picking up ‘some’ as we head into the final stretch of Q3 and into Q4. 
• Upward trend-line off of the 6/4 lows has rising support at 1400. 
• Near-term resistance is at 1437. Additional Buying power should flow in once we break that level. 
• If we pullback today, look for some dip buying opportunities around 1419. 
• We are overbought as of yesterday’s close. 
• Test at 1440 resistance is in play today. While there isn’t a lot of resistance overhead, this is a minor resistance level worth noting. 
• SharePlanner Reversal Indicator shows a bearish divergence which is worth noting. 
• FOMC Statement occurs on an unusual Thursday at 12:30pm est (typically Tuesday or Wednesday). 
• 30-min chart shows a nice uptrend now in place with higher-highs and higher-lows. 
• VIX surged yesterday and now back above 16. 
• 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 1396 for a new lower-low in the market.  

My Opinions & Trades:

• Took a long position in CRR at $72.27. 
• Bought QIHU at $24.00
• Sold ALXA at $4.84 from $4.83 for a 0.2% gain. 
• Sold CROX at $18.22 from $17.39 for a 4.8% gain. 
• Looking to add 1-2 new positions today. May be open to 1 short hedge as well. 
• Current stop-losses have been adjusted across the board. 
• ALXN stop-loss moved up to $108.00
• Stop-loss for FBHS at $25.70.
• Stop-Loss for V at $125.85
• Remain long V at $127.18, FBHS at $24.54, and ALXN at $102.53
• Track my portfolio RealTime here. 

Charts: