Pre-market update:

  • Asian markets traded 0.6% higher.
  • European markets are trading 0.6% lower.
  • US futures are trading flat ahead of the market open. 


Economic reports due out (all times are eastern): New Home Sales (10)

Technical Outlook (SPX):

  • Despite a Wednesday’s trading that cast doubt on the market rally as being nothing more than a dead-cat bounce, SPX managed yesterday to produce new highs on the current bounce. 
  • Ebola news creeped back into the market and has shown the potential to wipe out 10 handles on SPX within minutes – just on rumors. 
  • Despite being only limited to three people at the moment, unexpected news on the ebola front has the potential to rock the market negatively. 
  • Also with news of the doctor being found positive with ebola, the risk increases over the weekend for holding equities and the possibility of new cases coming about.
  • 50-day moving average in play today at 1966. If SPX pushes past this level, additional shorts squeezes should ensue. 
  • SPX nearing overbought territory in the short-term. No real concern at this point. 
  • Volume this week has been far less than what we have seen in previous weeks but still above average. 
  • SPX rallied beyond the 61.8% Fibonacci Retracement level. Fibs are no longer relevant to this rally. 
  • SPX 30 minute chart continues to show consecutive higher-highs and higher-lows, though the trend itself has flattened out some. 
  • VIX rallied 7.5% to 16.53.
  • This market is wild and erratic – if you are playing it with large position sizes, you going to find it very difficult to succeed. 
  • The market doesn’t care about the economy nor earnings. That is not what is driving it. The market only cares about what the Fed is doing to keep equities propped up. 


My Trades:

  • Closed out ROST yesterday at 80.13 for a 4.4% gain. 
  • Added two new long positions to the portfolio yesterday. 
  • Will consider adding 1-2 new positions today. 
  • Remain long AAPL at 101.73, SH at 23.41.
  • 40% long / 60% cash. 
  • Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 10-24-14

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