First and foremost I want to welcome Grimm back to the Chat room! She had a well deserved vacation and now she is de-stressed, well rested and ready to tear it up in the ETF world once again. HHHHHHOOOOOOOOOOO RRRRAAAAAAHHHHH!
Now on to the markets!
Comments that Iran does not plan to cut production on oil until they reach 4 million barrels a day was enough to put the brakes on oils recent rally and that played a role in the markets struggling move higher. Even a news report that Vladimir Putin has told his military to start withdrawing from Syria wasn't enough. (apparently there are some trust issues there) That's weird???? (sarcasm)
GWPH, ZYNE both small floater Bios were the plays of the day in the biotech/marijuana space. While they both had news GWPH seemed to be much more substantive. Then after the close we had another small bio CPXX come out with data that sent it shares flying over 400 percent at one point in post market. I have been saying for weeks that we need the Biotech sector to participate if this rally is going to be able to take the markets to new highs. Most companies in the space lose money so these really are some the most risky plays out there and that is what makes them so volatile.
The fortunes of many of the companies in the space are tied to the success or failure of one drug. The cost to bring a single drug to market is immense and it can take anywhere from 7 to 10 years to get that one drug through all the clinical trails and FDA hurdles before they have any chance of making money. Even though odds are stacked against most biotech companies. Once we have a few companies that have these spectacular moves, traders start trying to identify the next big mover and a feeding frenzy can develop for anything biotech driving low floater small cap bios to insane levels of valuation. I am not saying that its guaranteed to happen now but it is definitely a sector to keep a close eye on.
Look for lots of fluff pieces to start coming out in both the biotech and marijuana sectors be careful not to get swept up in the hype and understand that these are both extremely risky sectors so if you play in the space be very careful even if they are only short term trades.
The dollar showed some strength yesterday while gold and the gold miners both had a bit of a pull back. I will be watching to see if those moves continue into today. UUP GLD NUGT and DUST are on the radar.
Currently the markets around the globe are taking a pause and it looks like we have some red arrows flashing premarket. We have the Fed meeting that starts today and then the Fed statement tomorrow. We could see some more choppy action until we get the actual statement
The Fed, oil inventories and "Mega Tuesday" primary results could make Wednesday a day to remember. Be prepared for some volatility to creep back into the markets.
Today's Economic Calendar
FOMC meeting begins
8:30 Empire State Mfg Survey
8:30 Producer Price Index
8:30 Retail Sales
8:55 Redbook Chain Store Sales
10:00 Business Inventories
10:00 NAHB Housing Market Index
4:00 PM Treasury International Capita
8:30 Empire State Mfg Survey
8:30 Producer Price Index
8:30 Retail Sales
8:55 Redbook Chain Store Sales
10:00 Business Inventories
10:00 NAHB Housing Market Index
4:00 PM Treasury International Capita
Volatility & SPY OIL Biotech
UVXY XIV VXX TVIX SPXS UWTI DWTI GUSH DRIP IBB LABU LABD
Gold SILVER Dollar Financials
GLD NUGT JNUG DUST JDST GDX GDXJ USLV UUP FAS XLF FAZ
Stocks on my Radar premarket
CPXX Big GAPPER potential intraday setup 20 dollar PT from one analyst > could give trades to both longs and shorts
CBDS potential continuation
ARTX Earnings >right sector
SZYM earnings potential gapper off Big contract news
ESI earnings big short interest gapper
OREX pr potential dolla roll
VRX earnings miss
OUTR earnings and divi announcement
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