Thursday, September 29, 2016
Economic Calendar & Watch Lists
US Futures are relatively flat to slightly lower after yesterday’s sharp jump led by the move in crude oil after OPEC announced it would cut production. European stocks are trading higher led by a move in energy producers fueled also by the OPEC news. Asian stocks closed mostly higher.
The SPY surged higher throughout yesterday’s session testing the heavy resistance point just under $217. Support will lie at the lof of yesterday’s range at $214.71, followed by the short term ascending support at $214.30, then $213.62, $213.44, AND $213.38. Resistance will lie at the near term ascending resistance at $216.80, followed by yesterday’s high at $216.82, then $216.88, and the 50 day moving average at $216.90.
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 Weekly initial unemployment claims expected +8,000 to 260K
8:30 Revised Q2 GDP expected +1.3% q/q
8:30 August wholesale inventories expected unch
8:30 USDA weekly export sales
10:00 August pending home sales expected unch
4:00 Fed Chair Janet Yellen speaks
Notable Earnings Before Open
CAG: Conagra – EPS Est. $.48, Rev Est. $2.74B
PEP: Pepsi – EPS Est. $1.32, Rev Est. $15.89B
Notable Earnings After Close
COST: Costco – EPS Est. $1.73, Rev Est. $36.7B
September 29th Swing Watch List
$NIHD – A big flag consolidating at the 20 and 50 EMAs.The room here is to 4, short term. Long entry is over 3.40, stop at 3.19. Add spot over 3.50.
$AMAT – A nice pull back opportunity with low implied volatility. That makes this good for a long call setup. I am looking at a bull call spread Nov16 30/32c for a debit of .70. Alternatives are, long entry over 29.80, or buy Nov16 30calls for 1.19.
$IMMU – A carry over after Wednesday selling pressure couldn’t keep this name down. Same setup and same play: Nice bull flag on this bio runner. Long entry is over 3.45-3.50, stop is 3.20. Target is 3.80s and the 4+.
$DG – In week and strong markets, this name is threatening lower with a break of support under 70. Short entry will be under 70, probably using puts, looking for a move to 68.50 and then 67, short term.