Futures are getting crushed this morning. Good job by all those folks on TV yesterday sounding the “all clear” based on yesterday’s weak bounce. Here’s what Briefing.com has to say about the reasons for this morning’s weakness:
8:33 Futures trade continues to languish well below fair value as the yen strengthening considerably within the last 45 minutes continues to fuel fears tied to the unwinding of carry-trades…
8:00 Early indications continue to deteriorate, suggesting yesterday’s modest rebound will be met with another day of selling. In fact, recognition that Wednesday’s recovery effort wasn’t all that impressive when measured against such a meltdown on Tuesday creates an added sense of uneasiness.With Tuesday’s sell-off shifting the balance of sentiment and focus to everything negative, the implications that today’s influential economic data can have on Fed policy and the market’s mentality on consumer spending activity are also weighing on sentiment. The upcoming personal income and spending report (8:30 ET) will be watched most closely since it contains the core-PCE deflator — the Fed’s favored inflation measure.
I’m focused on this week’s lows. If they don’t hold things could get ugly real quick. QQQQ is already trading below this week’s low in the pre-market. SPY and DIA are just above Tuesday’s lows…
On Today’s Calendar:
- 10:00 — Construction Spending
- 10:00 — ISM Index
More Calendars: U.S. Earnings | Conf. Calls | Surprises | IPO | Economic
Potential swing trades:
See one of the recent ‘Chart Reading‘ posts for some potential swing candidates.
Potential day trades:
(From Briefing.com)
Gapping Down
STZ -7.5%, SONS -5.7%, BOBJ -5.7%, LH -5.1%, NYX -4.3%, ASML -4.3%, CIEN -4.2%, ALU -4.1%, SIRF -3.8%, TFSM -3.5%, ELN -3.4%, LVLT -3.0%.
Gapping Up
Gapping up on strong earnings/guidance: SMSI +2.8%, THE +2.1%… M&A: STTS +22.7% (Temasek makes offer to acquire STTS), HYSL +20.8% (ORCL to acquire HYSL for $52.00/share)… Other news: EPCT +24.1% (held conference call this morning to discuss progress with its oncology programs… no details), DNDN +5.6% (FDA to review Provenge for treatment of asymptomatic, metastatic, androgen-independent prostate cancer), ONSM +5.3% (selected by DELL for StudioDell online service), NCC +3.3% (announces 40 mln shares tendered at/below $38.75), ADLR +2.5% (upgraded to Buy at First Albany), MOT +2.1% (confirms receipt of Hart-Scott-Rodino notice frrom Carl Icahn).
Disclaimer & How I use this list
The QID lot which I bought late yesterday took 20 minutes to get sold via a market order! Beware of wonky data feeds and malfunctioning trading platforms.
That sucks.
I see trading collars just kicked in
I was considering a QID and QLD trade this am, but Scottrade’s Elite had tech difficulties. I called them and they said I could make a trade over phone at net rates. Might be a good idea. Michael, do you still trade higher priced(like >$40) stocks with good vol? Do you scan the news for ideas, or alla X method? Thanks. Love the site.
BL, any priced stock is fair game for me although I tend not to trade single digit stocks. My techniques haven’t changed from what’s I wrote last year except for the gap fades that I’ve added.
Re: technical issues. CyberTrader reported that the Nasdaq was having level 2 data issues this morning. Makes for a fun day. (BTW, Mercury is in retrograde!)