Thursday March 10, 2016
Economic Calendar & Watch Lists 3/10/2016
US Futures are higher this morning and European markets are trading higher by nearly +2% after the ECB committed to expanding Quantitative Easing (QE) while slashing both the benchmark and financing interest rates. Asian stocks closed mixed.
The SPY traded on an inside day during yesterday’s session making for extremely slow, choppy markets. We continue to trade in a very congested, unfavorable range resulting in poor price action. Support will lie at the low of yesterday’s range at $198.43, closely followed by $198.21 and $198.11. Resistance will lie at the high of yesterday’s range at $199.79, closely followed by $199.92 and the critical pivot level of $200.05.
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 Weekly initial unemployment claims expected -3,000 to 275,000, previous +6,000 to 278,000
8:30 USDA weekly Export Sales
11:00 Treasury announces amount of 10-year TIPS to be auctioned March 17
1:00 Treasury auctions $12B 30-year T-bonds
2:00 Feb monthly budget statement expected -$196.3B, Jan +$55.163B
Notable Earnings Before Open
$DG: Dollar General – EPS Est. $1.27, Rev Est. $5.28B
Notable Earnings After Close
$PAY: Verifone Systems – EPS Est. $.46, Rev Est. $501.22M
$ULTA: Ulta Salon – EPS Est. $1.53, Rev Est. $1.23B
March 10th Watch List
$XNPT – A big running biotech on watch after a brief consolidation and flagging period at the 4.50 area. This looks good for a move back to 5, if not over. Long entry over 4.60, stop 4.25.
$K – A nice consolidation pattern under the 76 resistance area. Once it pops over, this thing is on the way to new all time highs. I like this for a longer term play, since I am not sure when it pops over. Looking at bull call spread with April expiration. The 70/75 ITM spread shows less than a 1% chance of closing it at max loss. Pretty good odds, statistically speaking.
$EROS – As this moves up off the bottom, I like the bullish cross and hold over the EMAs, high relative volume and flag pattern. Looking for a long entry over 9.60, add over 10. Target is 10.40 on the button.
$NWE – Another high flier that is banging its head on resistance at 62. I like this for a short in a weak market either near 62, or under 61. First target will be 60, and then 59.
Earnings Iron Condors: TFM, LOCO, ULTA