No Matter What It Takes!

Good Morning folks,

We are setting up for a potentially fun day ahead. The markets are very oversold and they are due for a bounce. Today we have Janet Yellen speaking and then we have Oil inventories either during her testimony or directly after. We could be Gellin with Yellen if she gives a more dovish tone in her remarks. If she comes out hawkish and continues to push for 4 interest rate hikes this year we could be looking at more pain. 

The oil inventory report is likely going to be bearish but if we can manage to stabilize or even have a positive print in oil after getting the numbers it could give us more fuel <(see what I did there) to spark a rally. We are seeing more oil companies come out and slash their dividends and after yesterdays close S&P came out and downgraded 25 oil companies junk ratings http://seekingalpha.com/news/3094566-s-and-p-downgrades-junk-ratings-25-oil-gas-producers?   These events typically occur near the end of a cycle. Meaning, we may be closer to a bottom in the sector and the potential rewards of getting involved with the very best names and the strongest balance sheets could finally outweigh the risks. For a day trade or even a short term swing for a day or two UWTI is also on the radar. 

DIS absolutely SMASHED earnings but the stock is struggling premarket. This is a stock I want to own for the long haul in my IRA. I have been patiently waiting for an area to start dipping my toe. If it were able to hit the 80 dollar mark I would begin to dip. I like round number areas of support and it just so happens to be a 38.2 percent Fibonacci retracement.

I am also looking for the IBB to give us a nice rally since it is in an area on the weekly that could give us a nice powerful bounce off a trendline and 200 MA. LABU will be my preferred vehicle to take that ride if we get the type of move I am looking for. 

Keep in mind this game plan only works if Yellen and Oil cooperate. Be careful in the Gold and Gold miners if the markets rally JDST and DUST could get some follow through off yesterdays action.   

Today's Economic Calendar

7:00 MBA Mortgage Applications
10:00 Yellen delivers semi-annual monetary policy testimony
10:30 EIA Petroleum Inventories
1:00 PM Results of $23B, 10-Year Note Auction
2:00 PM Treasury Budget

Volatility                            Oil                                             Biotech
UVXY XIV TVIX     UWTI DWTI GUSH DRIP                     IBB LABU LABD       
 Gold                                                                 SILVER             Dollar 
GLD NUGT JNUG DUST JDST  GDX GDXJ           USLV                UUP 

A few Stocks on the Radar premarket
CALD earnings 
RSYS earnings 
CNX 13g
FIT Vanguard group 9.21% stake
DB continuation snap back 

NYMX follow through off yesterdays news 

BTU 4:46:58am

BTU

Peabody Energy +6.5% Premarket @ $3.60 on Light Volume; US Supreme Court Put Hold on EPA Carbon Emissions Rule on Tuesday