User: Ryan Mallory: Portfolio Update: Trading Plan for July 23, 2012 | SharePlanner

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

European markets are trading -2.1% lower..  Asian markets traded in excess of -2.3% lower.  US futures are trading -1.5% lower ahead of the market open. 

Economic reports due out (all times are eastern): Chicago Fed National Activity Index (8:30am)

Technical Outlook (SPX):

SPX had a significant sell-off on Friday, with heavy continuation today.  The current uptrend remains intact above 1340, after that. A 'lower-low' would be put in place at a close below 1325, the latter of which would make this market notably bearish.  Sell-off comes, after a few days being short-term overbought.  Volume continues to increase over the past four trading sessions.  On 7/18 we managed to break through the descending trend-line off of the 4/2 highs (see chart below).  But not this is starting to look like an incredible 'head-fake'. Watch the SPRI that I posted this past Sunday and how it shows us near-ready for the reversal signal.  Also note the price resistance the SPX is up against on the weekly chart.  The VIX remains under 17. A push back above 20, would increase the bearishness of the market.  30-minute chart shows a nice channel uptrend being threatened by today's early morning action. 

My Opinions & Trades:

Going to allow stops to do their work today, and let FB short run as much as possible.  Stopped out of TPC on Friday at $12.08 from 12.43 for a -2.8% loss Stopped out of CIE at $23.43 from $24.22 for a -3.3% loss.  Did not add any new positions on Friday. 

Charts:

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