Thursday, May 26, 2016

Waiting On Yellen

Good morning folks, 
After two solid days in the markets it would not be a big shocker if we had a choppy or even a slight pull back today heading into tomorrow and the anticipation of Janet Yellen speaking. 

There is a tremendous amount of speculation taking place about what tone Yellen will have or what signal she will send. Regardless of what she says I doubt she will let everyone know what the Fed is planning to do with 100 percent certainty. So, unless she raises the rate tomorrow there will be a lot more speculation after her comments as all the talking heads dissect every word that comes out of her mouth. 

What we do know with certainty is that we are coming up on a long holiday weekend and after the nice run we have had this week it couldn't hurt to lock in some profits. Technically, in several indexes and sectors we are bumping right up against potential resistance. 

It would be healthy and constructive to consolidate in this area to build up some energy if we are going to attempt to break through that resistance. If we consolidate and build a platform to launch from the more explosive the breakout can be. 

Going through my scans last night it didn't come as a surprise that there were a ton of oil and energy related names that caught my eye and this morning premarket we took out the 50 dollar a barrel price. Whether that can sustain and continue after the market opens will be something to pay close attention to. If we can and it picks up some momentum on the break it will likely take the entire sector higher.

The dollar strength took a pause yesterday and its flashing red premarket. That gave some of the miners and gold ETF's reason bounce after two days of significant declines. We could see more of the same today if the dollar remains weak.

The IBB had another strong day yesterday and we are firmly back between those two ares of potential support and resistance that we talked about in last weeks market wrap video. Ideally, I would like to see it consolidate a bit in this area before we attempt to test the resistance overhead.

Cyber security, financials and Semi's continue to look strong. Palo Alto reports earnings after the close and could provide a catalyst for the sector if they surprise with their results or guidance. 

We have lots of economic data out today but the most important things to watch will be durable goods and jobless claims. We will have both before the market opens. 

Today's Markets 
In Asia, Japan +0.1% to 16772. Hong Kong +0.1% to 20397. China +0.2%to 2822. India +1.9% to 26366. 
In Europe, at midday, London +0.1%. Paris +0.1%. Frankfurt +0.3%
Futures at 6:20, Dow +0.1%. S&P +0.1%. Nasdaq +0.1%. Crude +0.6% to $49.87. Gold +0.3% to $1230.10. 
Ten-year Treasury Yield flat at 1.86%

ETF's on my Radar 
Volatility                                                       OIL                                                Biotech
 Gold                                SILVER         Dollar                                Financials
GLD NUGT JNUG           USLV             UUP                                 FAS XLF FAZ

Minerals and Miners                   Utilities           RETAIL                    Transportation              
XME GDX GDXJ                      XLU             XRT                         IYT  XTN
Agriculture                                  SPY 
DBA, DAG                           SPXS SPXL
ACRX pr this morning recent insider buys in May from 3.05-3.26

We have 2 IPO's USFD and RETA that priced and will begin trading today

SDRL earnings better than expected getting a little action premarket could get a 4 test and roll watch ORIG for sympathy play

EBIO small bio former runner passive stake of 7.5 percent reported decent looking daily 

MOD earnings hot looking daily but it ran into the report gapping premarket 

NMBL potential red to green or continuation move off earnings yesterday

TRN large contract announcement after the close potential trend break 

ARAY pr look for it to take out resistance @ 5.50

ERII another contract announcement recent insider but @ 9.51 21k shares and a 10 million dollar share buyback announced 

MT pr potential 5 roll  active premarket 

NERV halted off pr could be a snapback play tiny floater don't chase it 

 *PR means press release* 

Stocks that are in this weeks Stocks to watch Ticker Tv session and their performance