Pre-market update:
- Asian markets traded -0.2% higher.
- European markets are trading flat.
- US futures are trading 0.1% lower ahead of the market open.
Economic reports due out (all times are eastern): Empire State Manufacturing (8:30), Industrial Production (9:15)
Technical Outlook (SPX):
- Friday nullified the notion that the action from the previous two days was an indication of another market bounce.
- Closed below the 20-day moving average for the first time since 9/7.
- Key support at 1887 was violated on Friday.
- The 30-minute chart of SPX has revealed the true character of this market, marked with lower-highs and lower-lows.
- VIX gave up much of its gains on Friday, but still managed to finish higher 4% at 13.31.
- September, so far is trading in a very similar pattern to July, except this time around it is an even tighter trading range.
- SPX quickly approaching oversold conditions, despite no major sell-off.
- FOMC Statement to come out on Wednesday.
- At the moment there is little to no fear in this market. That can always change, but no major themes in the market that can cause problems for it right now.
- 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:
- Sold CTXS at $71.87 for a 2.7% gain.
- Sold TSLA at $277.34 for a 1.9% loss.
- Added one short position as a hedge position.
- Remain long FB at 75.65, MAS at 23.72, MSFT at 45.49, SYMC at 24.69.
- Will look to add 1-2 new long position today if the market bounces here - also willing to being opening 1-2 new short positions should the market continue to decline.
- 40% Long 10% Short / 50% Cash