Monday October 31, 2016
Economic Calendar & Watch Lists
Morning Notes
US Futures are relatively flat this morning while European stocks are trading lower after German retail sales declined the most in 2 years, the Eurozone’s largest economy. The price of crude is lower this morning on news that OPEC and major oil producers were unable to reach an agreement on output cuts. Asian stocks closed mostly lower.
Technicals
The SPY was under pressure throughout Friday’s session with accelerated selling to close the week. Support will lie at the recent pivot at $212.50, followed by the low of Friday’s range at $211.71, then $211.21, $210.78, and the 200 day moving average at $207.73. Resistance will lie at the high of Friday’s range at $213.93, followed by the 100 day moving average at $214.35, then $214.62, $215.32, and the 50 day moving average at $215.52.
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**
$TSLA
$NKE
Economic Calendar
8:30 September personal spending expected +0.5%
8:30 September PCE deflator expected +0.2% m/m and +1.2% y/y
9:45 October Chicago PMI expected -0.2 to 54
10:30 October Dallas Fed manufacturing activity expected +5.5 to 1.8
Notable Earnings Before Open
D: Diamond Offshore – EPS Est. $1.04, Rev Est. $3.13B
LL: Lumber Liquidators – EPS Est. $(.21), Rev Est. $232.10M
ROP: Roper – EPS Est. $1.62, Rev Est. $960.21M
Notable Earnings After Close
IDTI: Integrated Device Technology – EPS Est. $.26, Rev Est. $184.01M
October 31st Swing Watch List
Wanting to add some bullish delta to my negative delta portfolio. I like NOC here over 230.00 if the move can be sustained. Looking at a Dec16 230/240 call spread for 3.25. Target here is the usual 30-50%, but if we get a nice market move, will look closer to 50%. Alternatives here would be long the stock over 230.00. Or, buy a Dec16 230 call @ $4.30.
