Friday March 4, 2016
Economic Calendar & Watch Lists 3/4/2016
Morning Notes
US futures are slightly higher this morning and European stocks are trading at a 1 month high. Markets await the February Non Farm payrolls report for further direction. Asian stocks closed mostly higher.
Technicals
The SPY edged higher in yesterday’s session on anemic volume but managed to close out on the high. Support will lie at 200.05, followed by the high of yesterday’s range at $199.79 and then the low of yesterday at $198.11. Resistance will lie at $201.90, followed by the 200 day SMA at $202.48.
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**
AMBA
SWHC
Economic Calendar
8:30 Weekly initial unemployment claims expected -2,000 to 270,000, previous +10,000 to 272,000
8:30 Revised Q4 non-farm productivity expected -3.0%, previous -3.0%
8:30 USDA weekly Export Sales
9:45 Revised Feb Markit services PMI expected +0.2 to 50.0, preliminary-Feb -3.4 to 49.8
10:00 Feb ISM non-manufacturing PMI expected -0.4 to 53.1
10:00 Jan factory orders expected +2.1%, Dec -2.9%
10:45 Dallas Fed President Rob Kaplan delivers a speech
Notable Earnings Before Open
NONE
Notable Earnings After Close
NONE
March 4th Watch List
TWTR – Breaking out of the sideways range, only looking to get an options spread going on this, to capitallize on IV.
SCTY – Following a big rumor, we see SCTY spiking 20%, I think this thing dies on the vine before making a full recovery. Another IV play with a credit spread.
DLTR – Carry forward from yesterday: My options portfolio is pretty heavy with positive delta, and am looking to flatten it out with some bear call spreads on DLTR. Testing 82 resistance, just below all time highs near 85, the recent earnings on this didn’t give investors much confidence. I think this trades between 70-80 between now and April. Looking at a Apr16 bear call spread 82.5/85 for a net credit.
LNKD – Carry forward from yesterday: After a 72% win on LNKD last week, looking to go back for more with an April bull put spread 115/110 or a weekly with 114/110. LNKD holding 114 support and could test 122, then 130.