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 $52.74

Charts:

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