Tuesday June 7, 2016
Economic Calendar & Watch Lists 6/7/2016
Morning Notes
US Futures are pointing higher again this morning as European stocks surge by nearly +1.5%. Fed Chair Janet Yellen spoke yesterday about how the US economy is showing signs of strengthening and would raise rates gradually. Asian stocks closed higher.
Technicals
The SPY pivoted higher after a week’s worth of accumulation at the former macro resistance point near the support of $209.30 – $209.50. The SPY is gapping higher again this morning which will put support at the high of yesterday’s range at $211.77, followed by the low of yesterday’s range at $210.51. Resistance will lie at $212.74 and $213.18 from July of 2015.
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**
$VRX
Economic Calendar
8:30 Final-Q1 non-farm productivity expected -0.6%
1:00 Treasury auctions $24 billion of 3-year T-notes
3:00 Apr consumer credit expected +$18.0B
Notable Earnings Before Open
HDS: HD Supply – EPS Est. $.47, Rev Est. $1.84B
Notable Earnings After Close
PAY: Verifone Systems – EPS Est. $.52, Rev Est. $530.10M
June 7th Swing Watch List
$DISH – Will be watching this for a reversal if the 200EMA cannot hold up. A return to 52-51.50 could be eminent. Short would be under 54 or at 56 if this moves higher first.
$M – Thanks to one of our members for this gem of a setup. Nice gap to fill and a sweet bullish chart. Look for a squeeze and move higher if 34.65 falls. Target is 37, short term. Good option liquidity and moderately low IV, so consider a bull call spread here, maybe a 34/36 Jul16. If you went long stock, you would need a .75c stop.
$DVN – If oil holds up, I like this for a breakout over the 38 area and a move to +40. Long entry starter over 37.70 and then again at 38.01. Stop will be 37.00 for now.
$TSLA – Will use a bull call spread (debit) since IV is low. Jul16 220/225 for a debit of 2.50 or less.
$BOOT – Long entry over 8.65, stop 8.00. Target is 10.15.
$CGNX – Short watch for reversal. Short is under 44, stop 45. Target is 41.60, then 40.60.
