Pre-market update
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- Asian markets traded -0.4% lower.
- European markets are trading 0.3% higher.
- US futures are trading 0.1% higher.
ICSC-Goldman Store Sales (7:45), Redbook (8:55), FHFA House Price Index (9), S&P Case-Shiller HPI (9), Consumer Confidence (10), Richmond Fed Manufacturing Index (10, State Street Investor Confidence Index (10)
Technical Outlook (SPX)
- Another respectable sell-off yesterday.
- A confluence of support held up though at the 1700 level which included not just the key milestone, but also the 10-day moving average and the rising trend-line as noted below.
- Volume was no better than average yesterday.
- SPX has come off of its overbought conditions with the three day sell-off.
- A potential head-and-shoulders pattern forming on the SPX 30-minute chart.
- Huge pop in the VIX yesterday sending it back up into the 14's.
- SPX gave up the 1709 support level that from a bullish perspective, I would've liked to have seen held.
- A 1-2 week period of consolidation at this point would not be surprising considering the price action that we've seen after similar run ups this year on the SPX.
- Continue to watch the 10-day moving average, and a break of which that might spur on a minor correction.
- I am continuing to trade to the long side, and for the foreseeable future.
- Markets don't care about the economy nor earnings. That is not what is driving them. The markets only care about what the Fed is doing to keep equities propped up.
- Sold SLB yesterday at 87.13 for a 5.8% gain.
- Sold EXXI yesterday at 29.29 for a a 6.4% gain.
- Sold OSK at 47.97 yesterday for a 2.3% gain.
- Sold FTNT at 20.87 for a 1.2% gain.
- Sold BAC at 14.32 for a -2.6% loss.
- Added one additional position to the portfolio yesterday as a long.
- Lightened up on the portfolio quite a bit to provide added flexibility for wherever this market might go.
- Currently 20% long / 10% short / 70% cash.
- Current Longs: BIDU at $143.15
- Current Shorts: FITB at 18.42
- I'll look to add one additional position to the long side today if conditions permit.
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