Today's Trading Plan: The Trap
Technical Outlook:
- S&P 500 (SPX) had a hard bounce yesterday of 1.5% that took price back to the underside of the 50-day moving average before failing to break through it.
- The volume on SPDRs S&P 500 (SPY) came in strong yesterday again, though slightly less than what we saw on Friday.
- Trend line off of the February lows is in play again today with weakness emerging once again with a strong gap down shaping up. Watch support at 2100.
- Despite yesterday's rally, SPX is still trading below the 5, 10, 20 and 50-day moving averages.
- Resistance yesterday on SPX at 2156-7 was broken yesterday.
- Russell (RUT) bounce wasn't overly impressive and less than the bounce on SPX. Plenty of resistance in the 1236 area.
- Massive reversal candle after climbing above 20 on the CBOE Market Volatility Index (VIX). Overall on the day, it shed 13% after it rose 40% on Friday.
- Crude (/CL) quickly weakening in the premarket.
- Two support to watch on SPX: 2168, 2155, and 2147.
My Trades:
- Closed SPXU at $24.10 yesterday for a 4.7% profit.
- Closed GME at $27.12 yesterday for a 3.0% profit.
- Closed MSFT as close to $56.98 for a 0.9% profit.
- Added two long positions as hedge positions yesterday.
- Closed out DOW at $53.28 on Friday for a 1.5% loss.
- Remain short: TGT at $70.30, T at $40.63.
- May add 1-2 new swing-trades to the portfolio today.
- Will consider adding new long positions to the portfolio if the market shows signs of putting together a possible bounce.
- Currently 20% Long / 20% Short / 60% Cash
Chart for SPX:
S&P 500 (SPX)
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