Wednesday February 24, 2016
Economic Calendar & Watch Lists 2/24/2016
US futures are sharply lower this morning by nearly -1% and European stocks are trading lower by over -2% as the price of crude slides -3.5%. API data released yesterday afternoon showed a 7.1 million barrel build. Markets await the G-20 meeting which takes place February 26-27 in Shanghai where top economic officials will meet and discuss the global conditions. Asian stocks closed mostly lower.
The SPY drifted lower in yesterday’s session on light volume closing the day on the lows as we move back into a more favorable trading range. Watch for the volume to return. Support will lie at $190.45, followed by $189.81 and $187.63. Resistance will lie at the low of yesterday’s range at $192.18, followed by the high of yesterday’s range at $194.32 and then the 50 day moving average at $194.86.
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**
8:00 Richmond Fed President Jeffrey Lacker speaks
9:45 Prelim-Feb Markit services PMI expected +0.3 to 53.5
10:00 Jan new home sales expected -4.4% to 520,000
10:30 EIA Weekly Petroleum Status Report
Notable Earnings Before Open
TGT: Target – EPS Est. $1.54, Rev Est. $21.75B
LOW: Lowe’s – EPS Est. $.59, Rev Est. $13.07B
CHK: Chesapeake Energy – EPS Est. $(.17), Rev Est. $2.63B
Notable Earnings After Close
HPQ: HP Inc – EPS Est. $.36, Rev Est. $12.1B
RIG: Transocean – EPS Est. $.73, Rev Est. $1.43B
February 24th Swing Watch List
SPY – An options spread will be on watch if 190 fails the SPY. We are pretty delta positive and will look to neutralize that with a SPY put spread. At these levels and with SPY vol so light, not interested in taking on much more this week as we are in nearly 7 open trades now.
MSCI – Would love to add to this on the breakdown under 72. Lot of downside in a weak market after making new highs. Will see what we get.