Monday February 22, 2016
Economic Calendar & Watch Lists 2/22/2016
US futures are sharply higher by over +1% and European stocks are trading higher by over +2% as crude rallies by over +3.5% boosting energy producer names. Asian stocks closed mostly higher.
The SPY is gapping sharply higher this morning near the next level of critical support/resistance. Support will lie at $193.32, followed closely by $193.27, and $192.18. Resistance will lie at the critical level between $194.58 – $194.86, then followed by the 50 day moving average at $195.37.
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 Jan Chicago Fed national activity index expected +0.12 to -0.10
9:45 Prelim-Feb Markit manufacturing PMI expected +0.1 to 52.5
11:00 USDA weekly grain export inspections
Notable Earnings Before Open
AGN: Allergan – EPS Est. $3.34, Rev Est. $4.19B
Notable Earnings After Close
FIT: FitBit – EPS Est. $.25, Rev Est. $647.82M
February 22nd Swing Watch List
CUDA – On watch for a potential gap fill and move back toward 2015 levels. Long starter over 12. 35, definite add spot over 12.50. Stop initially under 12.00. First target is 13.50 and then 14.70.
ARWR – I like the bull flag under 4.01 and the range to the upside. Long entry will be over 4.01, stop 3.75. First target is 4.30s and then 4.80s.
JACK – On spread watch for a call debit or put credit spread, depending on IV. Looking for a return and test of 70.00 as it moves into the gap.
GT – On watch as the auto sector looks to recover. One of the strongest stocks in the sector, following earnings, with liquidity in options. Looking for a put credit spread as GT tests the resistance area at 33.
SPY – Short watch for a rejection of resistance 193-194.