View: Trading Plan for August 30, 2012 | SharePlanner

Trading Plan for August 30, 2012 | SharePlanner

Pre-market update (updated 8:30am eastern):

European markets are trading 0.5% lower.  Asian markets finished -1.0% lower.  US futures are moderately lower ahead of the bell. 

Economic reports due out (all times are eastern): Jobless Claims (8:30am), Personal Income and Outlays (8:30am), EIA Natural Gas Report (10:30am), Kansas City Fed Manufacturing (11am)

Technical Outlook (SPX):

Once again we had another day of cosolidation...and we're looking at opening down for the seventh time in the last nine trading sessions Bull flag pattern continues to emergeduring that same time period. Despite the market showing some fatigue of late, the bias should still be to the long side. 30-min chart on SPX shows a well established bullish trend over the past month. Action since 8/21 has the potential for a new channel downward possibly forming.  If we sell-off again today, watch the 20-day moving average to act as a possible support level for the market, in which bulls try to buy the dip at.  10-day moving average has been rather useless of late, largely going ignored by the indices.  Going forward SPX needs to close above 1422 and take out 1426 recent intraday highs. Volume remains at ridiculously low levels - This week has been no better.  We are well-off of overbought levels - which gives this market plenty of room to run.  SharePlanner Reversal Indicator received a bullish confirmation signal.  VIX continues to climb and is at +16. One area of concern is the 3 large gaps off of the 6/4 lows that remain unfilled, including 6/6, 7/26, 8/3 If another sell-off were to ensue, watch for a break and close below 1354 for a new lower-low in the market.  

My Opinions & Trades:

Added V yesterday at 127.18. Stopped out of CRM at 144.75 from 150.09 Current stop-losses have been adjusted across the board.  Stop-loss in AMZN moved up to $241.00. HE Short stop-loss has been has been tightened to 27.40.  ALXN stop-loss moved up to $100.98 Remain long RHT at $57.56, FBHS at $24.54, ALXN at $102.53, LXP at $9.21, and AMZN at $233.90. Short HE at $28.45. Track my portfolio RealTime here. 

Charts:

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