Wednesday May 25, 2016
Economic Calendar & Watch Lists 5/25/2016
Morning Notes
US Futures are slightly higher this morning on carryover from yesterday’s rally while European stocks trade higher by over +1.3%. Crude oil edged higher by over +1%, lifting energy producers. More M&A activity surfaces as HPE said it would merge part of its business with CSC. Both are trading sharply higher in the pre market.
Technicals
The SPY surged higher in yesterday’s session closing out just off the highs and is gapping higher this morning. Support will lie at the high of yesterday’s range at $208.24, followed by the critical support pivot at $207, and then the low of yesterday’s range at $206.14. Resistance will lie first at $208.54, followed by the the macro descending resistance between $209 and $209.50. The macro descending resistance is a very critical level to watch as each time we have tested the level we have corrected.
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**
$BABA
$NFLX
$TIF
Economic Calendar
9:00 Philadelphia Fed President Patrick Harker speaks
9:00 Mar FHFA house price index expected +0.5% m/m
9:45 Prelim-May Markit services PMI expected +0.2 to 53.0
10:30 EIA Weekly Petroleum Status Report
11:30 Treasury auctions $13 billion of 2-year floating-rate notes
1:00 Treasury auctions $34 billion of 5-year T-notes
2:00 Dallas Fed President Robert Kaplan
Notable Earnings Before Open
TIF: Tiffany & Co – EPS Est. $.68, Rev Est. $914.94M
EXPR: Express – EPS Est. $.27, Rev Est. $521.80
Notable Earnings After Close
COST: Costco – EPS Est. $1.22, Rev Est. $27.12B
NTAP: NetApp – EPS Est. $.58, Rev Est. $1.4B
HPQ: HP – EPS Est. $.39, Rev Est. $11.73B
May 25th Swing Watch List
$BCRX – Moving back toward the gap. Looking like a long over 3.40, add 3.50 and then 3.72 for a move back toward 6.
$NVDA – A reversal setup here after this thing screams higher post earnings. Way overbought now. Looking for a short entry under 44.69, stop 45.50. Target is 40. Low IV here makes this ideal for a debit put spread!