View: Trading Plan for June 15, 2012 | SharePlanner

Trading Plan for June 15, 2012 | SharePlanner

Today's Trading Plan for June 15, 2012

Economic Reports Due out (Times are EST): Empire State Manufacturing Survey (8:30am), Treasury International Capital (9am), Industrial Production (9:15am), Consumer Sentiment (9:55am)

Pre-market Update (Updated 8:30am eastern):

US futures are slightly higher ahead of the open.  European markets are trading 1.2% higher.  Asian markets traded on average -0.6% lower. 

Technical Outlook (SPX):

Solid day for the bulls yesterday, as price action is finally starting to move out of the 5-day consolidation range.  To spur on the bulls to additional buying, there needs to be a close above 1334 Today is options expiration so there is an increased likelihood of volatility in the market (as if we don't have enough already).  50-day moving average could create headwinds for SPX at 1347.  Continue to follow SPX's 10-day moving average for short-term support in this market.  Inverse head and shoulders forming over the past month - currently working on the right shoulder - could see confirmation today.  IH&S pattern very obvious on the 30-minute chart. SPX is no longer overbought.  Volume remains relatively average.  The markets in general have pulled back roughly 10% off of its recent highs which is typically considered a "pullback" in the markets.  A break below 1306 would represent a resumption of the downward trend.  VIX is still elevated and rests above 21 - below 20 and the bear's hopes for a break lower is greatly hampered. However, it did take a pretty solid hit yesterday. 

My Opinions & Trades:

I am looking to add more long positions to the portfolio going into today's open. Conditions are becoming more favorable.  Careful about trading in and out of this market too much - I'm playing with my original stop-losses which is usually 3-4% off of the entry price and gives me enough wiggle room to weather the choppiness of this market day-to-day.  Day-traded SDS yesterday and sold at $16.51 from $16.58 for a -0.4% loss.  Bought PCYC at $40.66 yesterday.  Currently Long PPL at $27.65.


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