Thursday March 24, 2016
Economic Calendar & Watch Lists 3/24/2016
US Futures are lower this morning while European stocks are trading lower by nearly -1.5% as the dollar strengthens and crude slips over -2% pushing energy producers lower. Comments by the FOMC this week have hinted at a higher probability of a rate hike in the coming month. Asian stocks closed mostly lower.
The SPY traded lower in yesterday’s session closing at the daily 9 EMA. Support will be the 9 EMA at $203.11, followed closely by the low of yesterday’s range at $203.01, $202.77, and the 200 Day SMA at $201.82. Resistance will lie at the high of yesterday’s range at $204.33, followed by a double top at $205.23.
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**
8:15 St. Louis Fed President James Bullard speaks
8:30 Weekly initial unemployment claims expected +3,000 to 268,000, previous +7,000 to 265,000
8:30 Feb durable goods orders expected -3.0% and -0.3% ex-transportations
8:30 USDA weekly Export Sales
9:45 Mar Markit services PMI expected +1.7 to 51.4
11:00 Mar Kansas City Fed manufacturing activity
Notable Earnings Before Open
$ACN: Accenture PLC – EPS Est. $1.18, Rev Est. $7.72B
$SIG: Signet Jewelers – EPS Est. $3.59, Rev Est. $2.41B
Notable Earnings After Close
$GME: GameStop – EPS Est. $2.25, Rev Est. $3.57B
$CCL: Carnival Cruise Lines – EPS Est. $.31, Rev Est. $3.63B
March 24th Swing Watch List
$ROST – Looking at this strong bullish chart, ROST has just completed a pull back to the 20EMA support. It looks ready to resume the move higher and back toward 52w highs. Looking at the IV here, ROSS is at 52w lows for IV rank (4%). This means, that even the slightest uptick in price action and the markets could cause profits to come in quickly as volatility swells. So, looking at a May16 call spread for a debit. Likely the 55/60c for a net debit of less than 2.80.
No new shorts, already heavy with negative delta. FLOW and other short positions working so far. TSLA spread up near 30-40%, FDX +10% etc. Will look to close out tomorrow.
Earnings: $GME – Iron condor play here. Apr16 25/27.5/33.5/36 looking for IV crush as usual. Both RHT and NKE would have been huge wins, but no fills. Market maker move is only 1.5 points, but to be safe, I am giving these 3 points of room. Looking for a credit around .70-.80.