Market Update June 2nd

Just a quick update on the market conditions.  Currently the market has followed through to the upside after the initial gap up.  Longer term bias in the market is to the downside but today the current environment is strong.  Any long trades must have lower expectations if at all. 

The volume on this buying has been below average and there doesn’t seem to be many institutions participating in this up move.  My plan this morning was to the short side and around 10-10:30, when the SPY was having trouble at 108.50, tried a few shorts in Best Buy(BBY) and JP Morgan(JPM).  The trade in Best Buy worked out for a bit as I was able to capture .60 but the trade in JP Morgan turned into a loss.  These were the only trades that fit my early morning plan and currently I have no positions. 

We are right in the middle of yesterdays range on the SPY and have made up most of yesterdays afternoon selloff.  I am sitting on my hands waiting for the market to pick a direction.  I still like BBY short and the financials short but may test the long side in Las Vegas Sands(LVS) if the SPY can break a hold above 109.  The levels of resistance in LVS to watch is 23.83 and then 24.50.  If we get above these levels next profit target is 25. 

This may just be a day to protect any gains you have and if you are down  money to keep it to a reasonable amount.  Dont ruin your week and month on a low volume day that doesn’t fit your plan.  Best of luck for the rest of the day.

Kyle