Friday October 7, 2016
Economic Calendar & Watch Lists
Morning Notes
US Futures are slightly lower this morning while European stocks are also trading lower as markets await the Non farm payrolls report and whether or not it will be strong enough to allow for an interest rate hike by the Fed prior to years end.
Technicals
The SPY tested the near term support of the ascending channel and closed well off the intraday lows in yesterday’s session. Support will lie at the near term ascending support at $215.20, followed by the low of yesterday at $214.74, then $213.99, $213.62, and the 100 day moving average at $213.52. Resistance will lie at the high of yesterday’s range at $216.04, followed closely by $216.13 and $216.17, then the heavy resistance zone at $216.8.
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**
$TSN
$HON
$GPS
Economic Calendar
8:30 September non-farm payrolls expected +17K, August +151K
8:30 September avg hourly earnings expected +0.3% m/m
10:00 August wholesale inventories expected -0.1%
10:30 Fed Vice Chair Stanley Fischer speaks
3:00 August consumer credit expected +$16.5B
Notable Earnings Before Open
NONE
Notable Earnings After Close
NONE
October 7th Swing Watch List
$AGN – On swing watch for a breakout over 239.00. Going to use options on this one. Looking at a Nov16 bull call spread 240/245c for a debit of 1.75 or less. Alternative would be the Nov16 240c for 3.25 or less.
$SNA – Another pricey name with a good setup. Looking for a a breakout over the 50EMA. Nov16 bull call spread 150/155c for a debit of 2.75. Alternatives would be long over 153.50 or buy the Nov16 150c at 5.95 or better.
$TGI – On short watch as this BEAR flag is ready for new lows if market falls apart. Short entry is under 26.80, stop 27.80. Target is 26.30 and then 25.60.
