Wednesday, November 21, 2018

11/21/2018 - **Overnight Markets and News**

**Overnight Markets and News**

*Dec E-mini S&Ps (ESZ18 +0.63%) this morning are up +0.52% and European stocks are up +0.50%.  Energy stocks are higher with Jan WTI crude oil (CLF19 +1.95%) up +1.59% after API inventory data late Tuesday showed U.S. crude stockpiles fell -1.55 million bbl last week.  Technology stocks are moving higher as well on bargain hunting after this week's sharp sell-off.  An easing of Italian political concerns also gave European stocks a boost after La Stampa reported that Italian Deputy Prime Minister Salvini said he may be willing to take steps to lower Italy's budget deficit.  Asian stocks settled mixed: Japan -0.35%, Hong Kong +0.51%, China +0.21%, Taiwan -0.03%, Australia -0.51%, Singapore +0.39%, South Korea -0.49%, India -0.77%.  Japan's Nikkei Stock Index tumbled to a 3-week low as it followed losses in U.S. stock indexes on Tuesday, although China's Shanghai Composite recovered from early losses and closed higher.

*The dollar index (DXY00 -0.18%) is down -0.20%.  EUR/USD (^EURUSD +0.26%) is up +0.21%.  USD/JPY (^USDJPY +0.24%) is up +0.23%.

*Dec 10-year T-note prices (ZNZ18 -0-075) are down -6.5 ticks.

*The Japan Sep all-industry activity index fell -0.9% m/m, right on expectations.

*UK Oct public sector net borrowing was +8.0 billion pounds, stronger than expectations of +5.6 billion pounds and he most in 23-months.

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**U.S. Stock Preview**

*Key U.S. news today includes: (1) weekly MBA mortgage applications (previous -3.2% to 316.7 with purchase sub-index -2.3% to 220.8 and refi sub-index -4.3% to 824.7), (2) weekly initial unemployment claims (expected -1,000 to 215,000, previous +2,000 to 216,000) and continuing claims (expected -26,000 to 1.650 million, previous +46,000 to 1.676 million), (3) Oct durable goods orders (expected -2.5% and +0.4% ex transportation, Sep +0.7% and unch ex transportation), (4) Oct leading indicators (expected +0.1%, Sep +0.5%), (5) Oct existing home sales (expected +1.0% to 5.20 million, Sep -3.4% to 5.15 million), (6) final-Nov University of Michigan U.S. consumer sentiment index (expected unch at 98.3, prelim-Nov -0.3 to 98.3), (7) EIA weekly Petroleum Status Report, (8) Treasury auctions $11 billion 10-year TIPS.

*Notable Russell 1000 earnings reports today include: Deere (consensus $2.45).

*U.S. IPO's scheduled to price today: none.

*Equity conferences during the remainder of this week: none.


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**Overnight U.S. Stock Movers**

*Neurocrine Bio (NBIX +1.33%) was rated a new 'Buy' at Canaccord Genuity with a price target of $111. 

*Nvidia (NVDA +3.03%) was downgraded to 'Underperform' from 'Neutral' at Exane BNP Paribas with a price target of $130.

*Goldman Sachs (GS -3.47%) is down -0.4% in pre-market trading after it was downgraded to 'Equal-Weight' from 'Overweight' at Morgan Stanley.

*Deere & Co (DE -2.84%) is down more than 4% in pre-market trading after it reported Q4 adjusted EPS of $2.30, below consensus of $2.45.

*Autodesk (ADSK -2.14%) rallied more than 8% in after-hours trading after it reported Q3 net revenue of $660.9 million, higher than consensus of $640.8 million.

*Wix.com (WIX +1.32%) was upgraded to 'Outperform' from 'Sector Perform' at

*Keysight Technologies (KEYS -2.20%) climbed more than 5% in after-hours trading after it reported Q4 adjusted EPS of $1.01, higher than consensus of 91 cents.

*Copart (CPR) may open higher initially this morning after it reported Q1 operating income of $151.4 million, better than consensus of $147.7 million.

*Foot Locker (FL -5.57%) jumped nearly 12% in after-hours trading after it reported Q3 adjusted EPS of 95 cents, better than consensus of 92 cents.

*The Gap (GPS -3.07%) may move lower initially this morning after it reported Q3 total comparable sales were unchanged, weaker than consensus of a +1.1% increase.

*Caleres (CAL -3.30%) dropped 7% in after-hours trading after it reported Q3 adjusted EPS of 81 cents, weaker than consensus of 87 cents, and then forecast full-year adjusted EPS of $2,25 to $2.35, below consensus of $2.45.

*BJ's Wholesale Club Holdings (BJ -1.20%) rose more than 6% in after-hours trading after it reported Q3 adjusted Ebitda of $148.6 million, well above consensus of $141.1 million.

*InfraREIT (HIFR +0.05%) climbed 6% in after-hours trading after it said it received a nonbinding acquisition proposal from a third party.


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**Market Comments**

*Dec S&P 500 E-minis (ESZ18 +0.63%) this morning are up +13.75 points (+0.52%).  Tuesday's closes: S&P 500 -1.82%, Dow Jones -2.21%, Nasdaq 100 -1.75%.  The S&P 500 on Tuesday tumbled to a 3-week low and closed sharply lower on continued weakness in technology stocks, led by a nearly 5% drop in Apple to a 6-1/2 month low, after several supplies of parts for Apple said the company is cutting parts orders for the latest iPhone.  There was also a slump in retail stocks, led by an -11% plunge in Target to a 10-1/2 month low, after it forecast a slowdown in sales for the holiday quarter.  Energy stocks fell sharply again after crude oil prices fell -6.59% to a 1-year low.

*Dec 10-year T-notes (ZNZ18 -0-075) this morning are down -6.5 ticks.  Tuesday's closes: TYZ8 +1.50, FVZ8 -1.00.  Dec 10-year T-notes on Tuesday rallied to a 2-1/4 month high and closed higher on the fall in the S&P 500 to a 3-week low, which spurred safe-haven buying of T-notes.  T-notes were also supported by reduced inflation expectations after the 10-year T-note breakeven inflation expectations rate fell to a 10-1/2 month low.

*The dollar index (DXY00 -0.18%) this morning is down -0.196 (-0.20%), EUR/USD (^EURUSD +0.26%) is up +0.0024 (+0.21%), and USD/JPY (^USDJPY +0.24%) is up +0.26 (+0.23%).  Tuesday's closes: Dollar Index +0.643 (+0.67%), EUR/USD -0.0084 (-0.73%), USD/JPY +0.22 (+0.20%).  The dollar index on Tuesday closed higher on the as-expected +1.5% increase in U.S. Oct housing starts, which was hawkish for Fed policy.  There was also weakness in the currencies of crude exporting countries as the Canadian dollar fell to a 4-1/2 month low against the dollar after crude oil prices tumbled to a 1-year low.

*Metals prices this morning are higher with Dec gold (GCZ18 +0.23%) +2.7 (+0.22%)), Dec silver (SIZ18 +0.95%) +0.131 (+0.92%), Dec copper (HGZ18 +0.69%) +0.016 (+058%).  Dec gold on Tuesday closed down -$4.10 an ounce (-0.33%), Dec silver closed down -0.134 (-0.93%) and Dec copper closed -0.0325 (-1.16%).  A rally in the dollar on Tuesday weighed on metals prices.  Also, inflation expectations have declined, which curbs demand for precious metals as an inflation hedge after the 10-year T-note breakeven inflation rate tumbled to a 10-1/2 month low on Tuesday.  Losses in metals were limited as the S&P 500 fell to a 3-week low, which boosted safe-haven demand for precious metals.  The recent stock market volatility has already boosted demand for gold as a store of wealth as long gold positions in ETFs rose to a 3-1/4 month high on Monday of 2,138 MT.

*Jan WTI crude oil prices (CLF19 +1.95%) this morning are up +85 cents (+1.59%) and Jan gasoline (RBF19 +1.22%) is up +1.37 (+0.93%).  Jan WTI crude oil (CLF19) on Tuesday closed sharply lower by -$3.77 per barrel (-6.59%) and Jan Brent crude (CBF19) closed down -$4.44 (-6.65%).  Jan RBOB gasoline (RBF19) closed down -9.25 cents a gallon (-5.89%).  Energy prices sold off sharply Tuesday with Jan WTI crude at a 1-year low, Jan Brent crude at an 8-1/4 month low, and Jan RBOB gasoline at a 1-1/4 year low.  Crude oil prices on Tuesday extended the recent sharp decline due to concerns that OPEC+ at their Dec 6 meeting will not cut production in 2019 by enough to offset the expected surplus.  A stronger dollar Tuesday also put the energy complex on the defensive and losses accelerated on fund selling due to oversupply concerns as Wednesday's weekly EIA crude inventories are expected to climb +3.5 million bbl, which would be the ninth consecutive increase.  Energy markets maintained their losses Tuesday after the S&P 500 tumbled to a 3-week low, which undercuts confidence in the economic outlook and in energy demand.  Finally, a slide in the crack spread to a 1-week low reduced incentive for refiners to purchase crude oil to refine it into gasoline.
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*PLACING TRADES*
HOW TO READ THE MARKET


OK SO IF YOU LOOK AT TODAYS SHEET YOU WILL LOOK FOR YOUR BUY/SELL SIGNALS FIRST.
THE BUY SELL SIGNAL IS LOCATED UNDER THE "POSMOM" & "NEGMOM" COLUMNS.
FOR BUYS SIGNALS YOUR LOOKING FOR EITHER A "311", "411" OR "911"
LIKEWISE FOR SELL SIGNALS.  BUY AND SELL ARE BASED ON THE POS MOM AND NEG MOM
THERE IS ALSO "11"
WHICH MEANS THAT THE MARKET IS LOCKED IN WITH EITHER BULLISH OR BEARISH MOMENTUM. THIS IS ANALOGOUS TO A CONTINUATION PATTERN IN EITHER DIRECTION.
NEXT YOU LOOK AT THE "TREND" COLUMN. IS YOU HAVE A BUY SIGNAL (AS INDICATED ABOVE) THEN YOU KNOW THAT YOU WILL BE TRADING WITH THE TREND IS THERE IS A "3","2" OR "1" IN THE TREND COLUMN.
3 IS A MATURE STAGE 3 TREND. EVERYTHING IS LOCKED IN MOMENTUM WISE. 2 IS A STAGE 2 TREND THAT IS STRENGTHENING AND WILL BECOME A STAGE 3 SOON.
 1 IS THE BEGINNING STAGE OF A TREND THAT DEVELOPING.
NEXT......IS THE MARKET TIMING. THATS WHERE THE PRICE TRIGGERS COME INTO PLAY. FOR LONGS YOU CAN ENTER @ THE "ENTRY" COLUMN OR TAKE A MORE CONSERVATIVE APPROACH (IF THE "52WK" COLUMN IS GREATER THAN THE "ENTRY" COLUMN) AND ENTER AT THE "52WK" TRIGGER.  ONCE YOU HAVE MADE YOUR DECISION YOU SIMPLY PLACE THE TICKET AND WAIT FOR THE MARKET TO COME TO YOU.
*NOTE: THERE IS A FAILSAFE BUILT INTO THE SYSTEM. EVEN WITHOUT LOOKING AT THE POS MOM & NEG MOM YOU CAN JUST USE THE PRICE TRIGGERS THEMSELVES AND ENTER A TRADE. REASON BEING IS BECAUSE IF THE PRICE TRIGGER IS HIT THE MARKET WILL MOVE IN THE DIRECTION AND TAKE YOU ALONG FOR THE RIDE!

*EXITS* - THERE ARE TWO WAYS TO DO EXITS. FIRST YOU CAN EXIT WHEN THE OPPOSITE PRICE TRIGGER IS HIT.

EXITS WORK LIKE ENTRY POINTS. YOU LET THE MARKET COME TO YOU. THE MORE CONSERVATIVE APPROACH IS TO USE THE "STOPLOSS" COLUMN AS YOUR EXIT ON LONG POSITIONS AND USE THE "ENTRY" COLUMN TO EXIT ON SHORT POSITIONS.
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General Advice Disclosure: Please note that the advice contained herein is general advice and is for the purposes of education only. The risk of loss in trading futures contracts, commodity options, stocks, stock options and forex currencies can be substantial, and therefore investors should understand the risks involved in taking leveraged positions and must assume responsibility for the risks associated with such investments and for their results. You are reminded that past performance is no guarantee or reliable indication of future results. It has not been prepared taking into account your particular investment objectives, financial situation and particular needs.You should therefore assess whether the advice is appropriate to your individual investment objectives, financial situation and particular needs. You should do this before making an investment decision based on this general advice. You can either make the assessment yourself or seek the help of a professional adviser. This commentary is not a recommendation to buy or sell, but rather a guideline to interpreting the specified indicators. This information should only be used by investors who are aware of the risk inherent in securities trading. The Vulcan Report accepts no liability whatsoever for any loss arising from any use of this expert or its contents.liability whatsoever for any loss arising from any use of this expert or its contents. For Related news and other stories please visit - http://www.wideawakenews.com/ For Related videos on our Youtube channel please visit - http://www.youtube.com/user/pulsescan72 Be Sure to register for faster updates and commentaries at - BLOG 1: - http://pulsescan.blogspot.com/ BLOG 2: - http://seekingalpha.com/instablog/466159-pulsescan72/ BULLS make money... BEARS make money.... PIGS get slaughtered! "TAKE WHAT YOU CAN .........GIVE NOTHING BACK"!!

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