User: Ryan Mallory: Daily Trading Plan: 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 $52.74

Charts:

Try Adam's Options Income Newsletter Today - Free For 14 Days!