Today’s Trading Plan: Still Waiting

Technical Outlook:

• Two days of consolidation following Monday’s small rally. 
• In the process of the coiling it is perfectly holding the multitude of moving averages found underneath it (5, 10, 20, 50).
• On a day-to-day basis, very little is actually changing until SPX puts in a higher high at 2087 or a lower low at 2040. 
• VIX continues to drop as if it is on some kind of massive bull rally of late – yesterday it was down 5.4% to 13.98. 
• SPX shows the makings for an upside breakout and on to new highs, but each day we are left with a market that simply lags and lingers. 
• Volume was below average yesterday on SPY but above the dismal showing on Tuesday. 
• It still amazes me that for all of the volatility that we have seen so far this year, that VIX is below 14. 
• SPX 30 minute chart continues to provide little in the way of clues about market direction. One of the choppiest charts out there. 
• The key for the bulls today will be to push the price above Last week’s highs. If it does that, there is a much more legitimate chance that this market is carving out a possible new uptrend. 
• The convergence of the 5, 10, 20, and 50-day moving averages is a perfect example of how non-directional this market has been over the course of this year. 
• The trading range continues to get even more narrow, with last week establishing a new lower-high and a higher-low. 
• Plenty of uncertainty remains in the market short-term. Euro and oil are major players in the market’s direction currently.
• Oil remains extremely volatile and becoming more so each and every day. Very difficult to trade – as are the oil stocks. 
• 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:

• Did not add any new positions yesterday. 
• Did not close out any positions yesterday. 
• 40% long / 60% cash. 
• I’ll consider adding 1-2 new long positions today dependent on the strength of today’s price action. 
• Remain long: UPRO at 132.12, AAPL at 126.81, ETN at 68.88, FB at 83.32.
• Join me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX: