Wednesday, March 16, 2016

Happy Fed Day

Good morning folks,
We have a lot of economic data hitting today as you can see from the economic calendar below.

The markets have been consolidating for the last several trading days as they we await some significant data that will impact the direction of the next short term trend. Which direction that will be is anyone's guess but the Fed announcement could be the deciding factor. Expect volatility to pick up as we head into options expiration at the end of the week. 

Gold held up once again yesterday as oil suffered a pullback from remarks out of Iran. Oil is getting a little pop this morning from chatter that there will be an OPEC meeting on April 17th. We have the oil inventory report @ 10:30 ET that could bolster the move we are seeing premarket and if that happens the oil and energy names could be in play. Gold will likely move off the Fed statement just remember that the first move is usually a head fake so don't jump too early.The strength of gold has been impressive and after the recent pullback it feels like its just taking a breather before continuing its trend higher. 

I was really hoping we were going some positive action in the Biotech sector after the news we had from GWPH & CPXX but unfortunately VRX  took the entire sector down with it after an abysmal earnings report. 

There is a lesson to be learned from VRX. Falling in love with any stock can be devastating to your portfolio. Bill Ackman is a billionaire that manages a lot of other peoples money and he made a critical mistake of sticking with VRX while the signs were there, both technically and fundamentally, that something was seriously wrong. Instead of cutting his losses quickly he added to his position and decided to go down with the ship. He may ultimately wind up being right about sticking with it but that could take many years. Maybe he can afford to wait it out but while his funds are tied up in VRX there will be hundreds if not thousands of other opportunities that may be missed because the funds are tied up in VRX making it dead money. Even the smartest people out there make mistakes and the markets can be a brutal teacher.  



Today's Economic Calendar
2:00 PM Chairman Press Conference
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 
BTU potential BK filing 
TERP and SUNE missed 10k filing extensions
VCYT pr potential bounce
CAPN pr contract potential base breakout
CMCM earnings and buyback announcement 16 roll 
CERS FDA approval 6 roll 
MZOR purchase potential 10 test CBAK  contract news gapper don't chase it 

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