Friday, August 12, 2016
Economic Calendar & Watch Lists
US Futures are relatively flat this morning while European markets trade slightly lower as markets await the July retail sales and consumer sentiment numbers. Chinese economic data expanded less than expected during last month however Asian stocks managed to close predominantly higher.
The SPY pivoted higher in yesterday’s session again putting in new all time highs. Support will lie at the low of yesterday’s range at $217.95, followed by the upper support pivot at $217.30, then $217.23, $217.07, $216.78, and $215.83. Resistance will lie only at the high of yesterday’s range.
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 July retail sales expected +0.4% and +0.1% ex-autos
8:30 July final demand PPI expected +0.1%
10:00 June business inventories expected +0.1%
10:00 Prelim Aug University of Michigan U.S. consumer sentiment index expected +1.5 to 91.5
12:00 USDA Aug WASDE crop production
Notable Earnings Before Open
Notable Earnings After Close
August 12th Swing Watch List
ETN – A low IV grinder pushing its way into overbought territory. This is a reversal setup we are after here. And because IV is low, we will look to use a debit spread, knowing that a shift in trend and a pullback will result in an increase in IV. Oct16 67.5/65 bear put spread for a debit of around 1.25.
WGL – Another reversal setup with some oversold conditions in a raging bull market. The pull back the EMA support level here gives me confidence this could be a good reversal/pivot. Oct16 65/70 bull call spread for a debit of 2.50 or better.
BOOT – A multiple watch list name in the past, but FINALLY looks to be breaking out. This could be a bit chase, but would make for a sweet day trade or maybe a small hold til Monday. Long entry is over 11.25, stop 11. Target is 11.80-12, short term.