News Column

Today's Trading Plan: Commence Q3

July 1, 2014

Ryan Mallory

Pre-market update:

Asian markets traded 0.7% higher. European markets are trading 0.6% higher.

US futures are trading 0.3% higher ahead of the market open. 

Economic reports due out (all times are eastern):
ICSC-Goldman Store Sales (7:45), Redbook (8:55), PMI Manufacturing Index (9:45), ISM Manufacturing Index (10), Construction Spending (10)

Technical Outlook (SPX):

SPX has broken out of its short-term bull flag, but yesterday's candle action was like that of a head-fake. The sell-off occurred in the latter stages of the afternoon and it is likely that it was due to quarter end to cheapen share prices only to buy them back again today in Q3.Volume has dropped off for the second consecutive day on the SPY. VIX spiked 2.8% to 11.70.Yesterday was the 6th consecutive quarter of gains for the market and 5th straight month (9 out of the last 10).SPX continues to hold support at the 10-day moving average lately. Strong possibility of SPX establishing new closing highs today. Near-timer support level to hold is Thursday's lows which is currently at 1944. More importantly is support at 1925, as a break of that price level would establish a new lower-low.SPX 30 minute chart has a quasi-double bottom chart that it formed last week and is now starting to break out of it. The rising trend-line off of 4/14/14 currently sits at 1929. 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 YOKU at 23.79 for a 8.0% gain yesterday. Closed out DDD at 59.64 for a 5.5% gain yesterday.I added one additional long position on yesterday.. Will look to add 1-2 new long positions today. Remain long FB at 66.63, CX at 13.22, AAPL at 91.4940% Long / 60% CashJoin me each day for all my real-time trades and alerts in the SharePlanner Splash Zone

Chart for SPX:

SP 500 Market Analysis 7-1-14

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Source: Shareplanner

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