Today’s Trading Plan: Intraday Madness

Technical Outlook:

Key support level at 1872 was tested yesterday and resulted in a major bounce of 46 points in the span of about 1 hour. The majority of the gains taking place in under 25 minutes.

Insane price movements every day being created by computer generated trading in a highly volatile market marked with enormous headline risk.

A rising trend-line in place off of the SPX 1/21 lows that was held yesterday.

Weakness in the premarket today and some dismal earnings reports, suggests that yesterday’s bounce may be short lived.

There is a lot of stop-loss hunting out there in the market, and being agile with getting in and out of positions quickly has been extremely important.

Short-term the market is overbought and could see at the very least a retest of the 1812 level.

SPY volume increased for a second straight day and was well above average levels.

VIX saw a huge spike higher momentarily, following an oil inventory report, but quickly retracted dropping 1.5% down to 21.65.

Another big day for the T2108 (% of stocks trading above the 40-day moving average) rising 20% up to 29.

Oil’s surprising rally of 9% yesterday was the main driver behind yesterday’s rally.

Confirming the head and shoulders pattern on the weekly chart of SPX/SPY will be critical for the bears if they are going to keep the downtrend going.

My Trades:

Closed out SDS yesterday at $22.54 for a 1.3% gain.

Closed out ORCL yesterday at $35.50 for a 0.06% loss.

Did not add any new swing-trades to the portfolio.

Currently 100% Cash

Staying light in this market is absolutely key. Strong bias at this stage is dangerous. Will look to add 1-2 additional short positions today if the market continues to weaken. Extremely difficult intraday market conditions that is seeing major moves take place in short-time frames without any warning.

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