Thursday May 12, 2016
Economic Calendar & Watch Lists 5/12/2016
Morning Notes
US Futures are moving higher this morning and European stocks are also trading higher by nearly +1% after a sharp move lower in yesterday’s session led by weakness in the retail sector. Crude oil rallied as the IEA slashed its global surplus estimate for half of 2016. Asian markets closed mostly mixed.
Technicals
The SPY sold off in yesterday’s session closing out on the lows. This morning the SPY is gapping higher and back above the critical resistance pivot at $207. Support will lie at the support pivot at $207, followed by the low of yesterday’s range at $206.50, Tuesday’s low at $206.40, and then Monday’s low at $205.36. Resistance will lie at the high of yesterday’s range at $208.54, followed by the macro descending resistance at $209.50.
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**
$KSS
$RL
$YY
$JACK
Economic Calendar
8:30 Weekly initial unemployment claims expected -4,000 to 270,000
8:30 Apr import price index expected +0.6% m/m and -5.4% y/y
8:30 USDA weekly Export Sales
11:00 Cleveland Fed President Loretta Mester speaks
11:00 Treasury announces amount of 10-year TIPS to be auctioned
11:45 Boston Fed President Eric Rosengren speaks
1:00 Treasury auctions $15 billion 30-year T-bonds
1:30 Kansas City Fed President Esther George speaks
Notable Earnings Before Open
KSS: Kohls – EPS Est. $.36, Rev Est. $4.14B
PRGO: Perrigo – EPS Est. $1.73, Rev Est. $1.35B
RL: Ralph Lauren – EPS Est. $.83, Rev Est. $1.86B
Notable Earnings After Close
NVDA: Nvidia – EPS Est. $.31, Rev Est. $1.27B
JWN: Nordstrom – EPS Est. $.45, Rev Est. $3.29B
SYMC: Symantec – EPS Est. $.24, Rev Est. $878.66M
May 12th Swing Watch List
$ERA – A basing pattern with increasing relative volume, but low volume overall. This could be gearing for a move up and trend reversal from the bears to the bulls. Long entry is over 10.00, stop 9.50. Target will be 10.85 and then 11.80. Add spot is 10.44.
$HBI – Sitting on a big shelf of support, this is a sweet short setup with room to move lower. Short entry is below support, 26.50, stop 27.25. First target will be 25.90 and then 25.
$SKX – Watch this short opportunity for a move back to 28.40 and 26.25 support levels. Short entry is under 30.50 somewhere, add under 30. Stop will be 31.
