Thursday January 21, 2016
Economic Calendar & Watch List 1/21/2016
Morning Notes
US futures are lower this morning by roughly -.50% while European stocks are trading higher by nearly +.60% as markets await the results of the ECB meeting. Continues weakness in crude is also weighing on the markets. Asian markets closed mostly lower.
Technicals
The SPY initially sold off sharply in yesterday’s session but managed to close well off the lows into the close. Support will lie at the low of yesterday’s range at $181.02, followed by $180.83 and $180.04. Resistance will lie at the high of yesterday’s range at $187.50, followed by $190.11.
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**
FB
NFLX
ZFGN
Economic Calendar
8:30 Weekly initial unemployment claims expected -6,000 to 278,000
8:30 Jan Philadelphia Fed business outlook survey expected +4.3 to -5.9
11:00 EIA Weekly Petroleum Status Report
1:00 Treasury auctions $15 billion 10-year TIPS
Notable Earnings Before Open
LUV: Southwest Airlines – EPS Est. $.90, Rev Est. $5B
KEY: KeyCorp – EPS Est. $.29, Rev Est. $1.09B
FITB: Fifth Third Bancorp – EPS Est. $.41, Rev Est. $1.52B
BBT: BB&T Corp – EPS Est. $.69, Rev Est. $2.57B
UAL: United Airlines – EPS Est. $2.58, Rev Est. $9.08B
Notable Earnings After Close
AXP: American Express – EPS Est. $1.13, Rev Est. $8.35B
SLB: Schlumberger – EPS Est. $.63, Rev Est. $7.8B
SBUX: StarBucks – EPS Est. $.45, Rev Est. $5.39B
January 21st Watch List
ROVI – Trading at long term, multi year resistance (previous support), this is a pretty obvious long over the 18.30-18.40 area, stop under 18. Room here is to 20.30, next long term resistance area.
ENOC – A big range small cap with good relative volume. The room here is back to 4.30-4.40. Looking for an entry over the 3.70-3.75 area, stop will be under 3.50.
UAM – Another small cap, but a super light volume mover. This MUST have high relative volume for me to take a trade on. Nice triple top following a sell off from the 7.00 area, so now looking for a return. Long entry is over 6.40, stop 6.10. The room here is to 7.00 and then 7.30.
STRP – A name that I have traded a few times previously, this one is actually my favorite setup of the day. Trading just at the 20 EMA after a candle over candle move up off higher lows tells me this can break out over 15.00. Looking for a long entry at 15.00-15.17, stop 14.50. Room here is all the way back to 16.75 and then 17.75.
PSA – A REALLY expensive stock, but a super strong chart, shifting to the weak side right before our eyes. Look at the high relative volume move down through the 20 and 50 EMA after attempting to breakout over that 250-255 are numerous times and failing. Finally, longs gave up and shorts have moved in. Room here short term is down 235, then 232. Short entry will be under 239.50, stop 241.00. This has a huge ATR, so will take small size and give it more room.
CATM – Another weak setup testing a major long term support area around 31. Looking for a move to 28 support from back in 2014. Short entry is under 31.00, stop 31.50.
