View: Trading Plan for June 25, 2012 | SharePlanner
Trading Plan for June 25, 2012 | SharePlanner
Pre-market Update (Updated 9:00am eastern):
US futures are down almost -1% ahead of the open. European markets are trading -1.1% lower. Asian markets are traded -0.6% lower.Economic Reports Due out (Times are EST): Chicago Fed national Activity Index (8:30am), New Home Sales (10am), Dallas Fed Manufacturing Survey (10:30am)
Technical Outlook (SPX):
SPX manage to pair some of its losses with a descent bounce on Friday. Found support at the previous inverse head and shoulders breakout level of 1324. If we fail to hold this level, a likely test comes again of 1306. The 10-day moving average was reclaimed on Friday. The 100-day moving average has been a tough resistance barrier for the market of late. In order to resume the rally that started off of the 6/4 lows, bulls need to drive price back above 1360. Market is nearing oversold levels in the short-term. One or two more good sell-offs should do it. There is an established uptrend in place on SPX off of the 6/4 lows with consecutive higher-highs and higher-lows now (two of each). SPX has a confirmed the inverse head and shoulders price pattern in place. 30-minute chart shows price action pulling back to support and the previous area where significant consolidation occurred. VIX at 18 and below the bearish mark of 20.My Opinions & Trades:
I'll be looking to add a mix of long and short positions to the portfolio Thursday's continual sell-off puts fear right back into this market. The Friday bounce felt like a dead-cat bounce and nothing more. I'm willing to add more shorts to the portfolio at this point. No new positions to the portfolio on Friday. I am still long AMZN at $221.60 and WNR at $20.51 and short CHD at $52.74Charts:
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