News Column

Today's Trading Plan: Emerging Distribution Short-Term

June 24, 2014

Ryan Mallory

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):
ICSC-Goldman Store Sales (7:45), Redbook (8:55), FHFA House Price INdex (9), S&P Case-Shiller HPI (9), New Home Sales (10), Consumer Confidence (10), Richmond Fed Manufacturing Index (10)

Technical Outlook (SPX):

SPX saw its first day in the red in seven sessions. One to two more days of additional selling here would not at all be surprising. The price action is setting up in a very similar fashion to what we saw earlier this month during the 3 days of selling. Volume was very light yesterday, and little to no conviction seen out of bulls. I don't expect that to change. No real, bearish news drivers out there that threatens to drive this market lower. VIX continued to pop higher for a third straight day to 10.98.Lots of distribution showing up on the SPX 30-minute chart. It has been over two months since SPX saw a move of more than 1% (4/16/14).If the market is inclined to pullback here, a hold of 1925 is essential for the bulls. Otherwise it will be creating a short-term lower-low. SPX testing the long-term upper channel on the weekly chart dating back to the highs of 4/2012 and connects all the subsequent highs. SPX back in overbought territory. The rising trend-line off of 4/14/14 currently sits at 1920. 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:

Closed out IR at $63.04 for a 4.9% gain. Closed out RVBD at 20.21 for a -1.2% loss. Closed out PACW at 43.50 for a 1.5% loss. I added one additional long position yesterday. Will look to add 1-3 new long positions today. Remain long GPOR at 65.33, TSLA at 229.45..30% Long / 70% CashJoin me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 6-24-14

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Source: Shareplanner

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