User: Ryan Mallory: Daily Trading Plan: Trading Plan for June 26, 2012 | SharePlanner
Trading Plan for June 26, 2012 | SharePlanner
Pre-market Update (Updated 9:00am eastern):
US futures are slightly higher ahead of the open. European markets are trading mixed/flat. Asian markets are traded in a wide range from -0.8% up to +0.5%.Economic Reports Due out (Times are EST): ICSC-Goldman Store Sales (7:45am), Redbook (8:55am), S&P Case-Shiller HPI (9am), Consumer Confidence (10am), Richmond Fed Manufacturing Index (10am), State Street Investor Confidence Index (10am)
Technical Outlook (SPX):
Another hard sell-off in SPX is putting in doubt the recent sustainability of the market rally. We are close to testing 1306, which is critical support. A break of this price level would officially resume the downward trend off of the 4/2 highs. Neckline of the inverse head and shoulders failed to hold support on Monday. The market is short-term oversold. Weakness in SPX took us back below the 10-day and 20-day moving averages. Neckline of the inverse head and shoulders failed to hold support on Monday. Weekly chart is showing a shooting-star pattern last week, followed by weakness to begin this week Very traditional bearish pattern. In order to resume the rally that started off of the 6/4 lows, bulls need to drive price back above 1360. 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). Below 1306 ends this uptrend. 30-minute chart shows an extreme sell-off that puts it in bounce territory. Strong rally in the VIX yesterday puts it back above 20.My Opinions & Trades:
I'll be looking closely at what the market does here, and whether I need to flip my long bias to the short side. Will continue trading with a mixture of long and short positions. Shorted ABC yesterday at $37.48. Bought AUTH yesterday at $4.13. I'm willing to add more shorts to the portfolio at this point. I am still long AMZN at $221.60 and WNR at $20.51 and short CHD at $52.74Charts:
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