Today's Trading Plan: Playing Bulls For Fools -

Today’s Trading Plan: Playing Bulls For Fools

Apr 01, 2016Jeremy ParkinsonFinance0

Technical Outlook:

One of the most volatile quarters ever ended on a quiet note yesterday pulling back ever so slightly.

Today’s morning weakness is looking at a respectable gap down. These gaps downs how been difficult for the bears to do anything with, often times leading to eventual, same-day, market rallies.

Last April had a fairly significant down-day to start the month. History is apparently trying to repeat itself.

Some distributional behaviors from the market over the last two days on the 30 minute chart.

On the same time frame looking at the SPX, bears would need to push the market below 2020 to put in a lower-low. That applies to the daily chart as well.

SPY volume ticked higher yesterday but still well below recent averages.

VIX attempting to bounce off of the support level going back to the October lows of last year.

Oil continuing to sell off quietly, down another 3% in the pre-market and looking to drop for the eight straight day and ninth time in the last ten days.

T2108 (% of stocks trading above their 40-day moving average) is trading still at its recent highs, suggesting that stocks are not yet giving up any gains of late.

SPY looking to break below the 5 and 10-day moving averages today. This has been a consistent bounce area for the market. Look for where price action on SPX closes relative to these MA’s.

Today will mark the end to one of the most volatile quarters the market has ever seen, and the first time since 1933 that the market has dropped over 10% and finished in the green in the same quarter – that is as long as 2044 holds today.

Yellen’s dovish outlook as it pertains to rate hikes has been, in large part, the reason for the massive rally off of the February lows.

Support continues to come in on any and all tests of the 10-day moving average.

My Trades:

Added one new swing-trade yesterday.

Sold EMN yeserday at 72.41 for a 1.8% loss.

Currently 40% Long / 60% Cash

Remain long TLT at $129.52, MJN at $82.05, AMZN at $581.21

Will look to add 1-2 new additional positions today if dip buyers show any desire to buy up the early weakness.

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