Wednesday January 20, 2016
Economic Calendar & Watch List 1/20/2016
US futures are are sharply lower this morning by nearly -2% while European stocks are trading lower by over -3% as the price of crude slid by 3% which is pulling energy producers with it. In addition, IBM is trading lower by -4% after its forecast was well below expectations dragging the technology sector lower. Asian stocks closed mostly lower.
The SPY tested critical support in yesterday’s session and managed to close back above into the close. This morning, the SPY is gapping significantly lower and back beneath the critical support. The first level of support lies at the August 24 flash crash low of $182.40. Resistance will first lie a the low of Friday’s range at $185.52, followed by $186.20.
Small Cap Watch List
*Please refer to the momentum scanners displayed live in the chat room for potential plays at the market open.
**Others On Watch**
8:30 Dec housing starts expected +2.3% to 1.2 million
8:30 Dec CPI expected unch m/m and +0.8% y/y
Notable Earnings Before Open
GS: Goldman Sachs – EPS Est. $3.79, Rev Est. $7.14B
Notable Earnings After Close
FFIV: F5 Networks – EPS Est. $1.6, Rev Est. $485.34M
XLNX: Xilinx – EPS Est. $.49, Rev Est. $554.5M
KMI: Kinder Morgan – EPS Est. $.18, Rev Est. $3.9B
January 20th Watch List
SNAK – My choice for a nice reversal play. I like this for a move back to 6.50+. Long entry will be over 5.57, stop 5.30. First target is 6.
TNK – An oversold tanker stock that has paid well for us in the past. Definitely looking for a bounce in the market and oil for this play. Lots of room here though. Long entry is over 4.50, stop 4.25. Room here is to 5.70 short term.
TAST – A nice and strong breakout setup with room to 14 highs. Long entry over 13.30, stop 13.00. Great risk reward setup here. Light resistance to 14.
EBS – If IBB has another week day, this can really sell off down to the 28 level before getting back to reality. Looking for a short entry under 32.50, stop 33.25.