Tuesday June 7, 2016
Economic Calendar & Watch Lists 6/7/2016
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.
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**
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.