Pre-market update:- Asian markets traded 1.4% higher.
- European markets are trading 0.2% higher.
- US futures are trading 0.1% higher ahead of the market open.
Economic reports due out (all times are eastern): ICSC-Goldman Store Sales (7:45), Retail Sales (8:30), Import and Export Prices (8:30), Redbook (8:55), Business Inventories (10)
Technical Outlook (SPX):
- Yesterday was the most significant price action that we have seen in nearly 3 months.
- Price on SPX broke out to new all-time closing highs, and did so in a very decisive manner, as did the DJIA.
- 1900 is likely to be tested at some point today. It is important that they hold this level and not induce fears of another sell-off after reaching new highs like we saw on 4/4.
- The biggest concern with yesterday is the fact that volume was rather light on the rally.
- With the conviction seen yesterday it is best to be long on this market going forward. SPX has broken out of the trading range and looks to continue rallying higher now.
- The biggest accomplishment for the bears at this point would be to push price back below 1883 and into the trading range to create doubt again. Easier said than done though.
- 30-minute chart confirms the price action of the daily chart.
- VIX dropped all the way down to 12.33.
- 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 Opinions & Trades:
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- Added two new long positions to the portfolio yesterday.
- Covered RCL at $52.36 for a 0.8% loss.
- Covered JCI at 45.28 for a 1.3% loss.
- Remain short TEL at 58.18.
- Remain long BHI at 70.04.
- Short 10% / 30% Long / 60% Cash
Chart for SPX:
