News Column

Today's Trading Plan: Tepid Response

June 17, 2014

Ryan Mallory

Pre-market update:

Asian markets traded 0.1% higher.European markets are trading 0.1% higher.

US futures are trading 0.1% lower ahead of the market open. 

Economic reports due out (all times are eastern):
ICSC-Goldman Store Sales (7:45), Consumer Price Index (8:30), Housing Starts (8:30), Redbook (8:55)

Technical Outlook (SPX):

Another mild bounce out of the market yesterday while managing a reasonable recovery off of the lows of the day and the overnight futures. However, following the three days of selling from last week, the two-day bounce that ensued has been tepid at best. SPX price struggling last two-days with getting back above the 10-day moving average. It doesn't look like Iraq will play a large role in the market going forward. There doesn't seem to be a lot of evidence that suggests Baghdad will fall to the ISIS. I think the events in Iraq has been more of an excuse for the markets to take profits than anything else. At this point we know that a drop below Thursday's lows or 1925 would be a signal that that the market wants to start another leg down in the market beyond just the selling we saw last week. Possible we see a range bound market again today as the FOMC Statement comes out tomorrow. Volume improved yesterday, and hasn't been all that bad compared to previous bullish days. VIX went against the market direction yesterday and rose another 3.9% to 12.65.Another 18 points would need to be peeled off of this market before threatening any significant trend-lines. Well off of overbought levels on SPX.Possible base forming on the 30-minute SPX chart. The rally that started on 4/14 needs to hold rising support at 1909.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:

Added NFLX yesterday at 428.56.Did not close out any positions yesterday. I will look to add 1-2 new long positions today. Remain long AKAM at 54.52, HAL at 63.07, IR at 60.11, FB at 63.05, RVBD at 20.29, PAY at 36.9170% Long / 30% CashJoin me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 6-17-14

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Source: Shareplanner

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