Thursday October 13, 2016
Economic Calendar & Watch Lists
Morning Notes
US Futures are tracking lower this morning while European stocks are trading lower by over -1.2% after news of a massive decline in Chinese export data which again raises further concerns about the global economy. Asian stocks closed lower.
Technicals
The SPY traded in a choppy range throughout yesterday’s session and ended back below the 100 day moving average. Support will lie at the low of yesterday’s range at $213.01, followed by $212.57, $212.31, and then $210.78. Resistance will lie at the 100 day moving average at $213.91, followed by the high of yesterday’s range at $214.32, then the near term ascending channel support at $215.77 which also coincides with Tuesday’s high.
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**
$BABA
Economic Calendar
8:30 Weekly initial unemployment claims expected +4,000 to 253K
8:30 Sep import price index expected +0.2% m/m
11:00 EIA Weekly Petroleum Status Report
Notable Earnings Before Open
DAL: Delta Airlines – EPS Est. $1.65, Rev Est. $10.6B
WGO: Winnebago Industries – EPS Est. $.49, Rev Est. $247.52M
Notable Earnings After Close
NONE
October 13th Watch List
$NVDA – A nice previous winner for us giving us a pull back entry opportunity. I like this for a Nov16 bull call spread. Nov16 65/70c for a debit of 2.75. Long entry is over 66.80-67.00 for stock traders. Also, the single leg Nov16 65c at 4.55 can be traded here as well.
$LULU – Still watching for reversal entry, over 57.70. A big downward oversold spiral for this company. Looking to play a reversal out of oversold conditions. Long entry is over 58.04, but you could sneak a starter position over 57.00, stop at 56.
$LUV – If energy holds up, we could see LUV break through resistance at 40.50. Long entry is going to be using a bull call spread, Nov16 40/42c for a debit of
$RPM – Another reversal setup here. Long entry is over $48.50, stop 47.75. Target is 50.00. If this breaks 48, be ready to bail by 47.75 as it isn’t done selling.
$SGEN – On short watch for a breakdown to nearby support at 49.75, which is our target. Short entry is under 52.90, add spot under 52.10. Stop will be 53.65.
