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

  • European markets are trading 0.8% higher. 
  • Asian markets finished 2.5% higher. 
  • US futures are trading slightly higher ahead of the bell. 

Economic reports due out (all times are eastern): Employment Situation (8:30am), Treasury STRIPS (3pm)

Technical Outlook (SPX):

  • Huge day for the market yesterday – breaking out to 4 year highs on the SPX – and new recovery highs. 
  • SPX broke out of the bull-flag  pattern and re-ignited the uptrend that the market has been on. 
  • Employment numbers missed expectations, but the overall rate did drop after 368k people left the work force.
  • Previous resistance at 1422 and 1426 was broken and closed above yesterday. 
  • Volume over the last 4 days continues to improve. 
  • The  next level of resistance for the SPX comes in at 1440. 
  • The bullish island reversal pattern previously mentioned this week on SPY was confirmed yesterday. 
  • It’s  important with the employment numbers now out of the way, for the market to hold the gains from yesterday and close at or near the highs from yesterday at the very least. 
  • Long-term uptrend support off of the 6/4 lows now shows support at 1386.
  • 30-min chart shows a strong breakout underway. 
  • VIX dropped hard and is back below 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:

  • Day-traded YELP yesterday from 24.68 to 25.68 for a 4.1% gain. 
  • Sold LXP yesterday at $9.80 from $9.21 fro a 6.4% gain. 
  • Covered short in HE at $27.10 from $28.45 for a 4.8% gain. 
  • Looking to add 1-2 new positions today.
  • Current stop-losses have been adjusted across the board. 
  • Stop-loss in AMZN moved up to $246.00.
  • HE Short stop-loss has been has been tightened to 27.10. 
  • ALXN stop-loss moved up to $106.00
  • CROX stop-loss moved up to $17.64
  • Stop-loss for FBHS at $25.43.
  • Stop-loss for V is now set at $125.85
  • Remain long CROX at $17.39, V at $127.18, FBHS at $24.54, ALXN at $102.53, LXP at $9.21, and AMZN at $233.90. Short HE at $28.45.
  • Track my portfolio RealTime here. 

Charts:

SP 500 Market Analysis 9-07-12

You Might Like

  • The psychology of swing-trading.

    The Psychology of Swing Trading and Winning the Mental Game

  • Building a lasting trading strategy for the long-term.

    Building Your Trading Strategy for Lasting Success

  • Resistance At Broken Trend Lines