Good morning
I mentioned in last week stocks to watch video that we were overbought in several sectors heading into a big earnings weak and that this could be a week where not matter how good earnings came in we could see the start of some type of pull back. Earnings have been very strong but it seems as though a lot of stocks have already priced them in. Yesterday we saw some weakness and volatility started to pick up. We have the lowest levels of volatility since 1929 and that is probably not a good thing. I am not suggesting we are going to have a crash like we did back then but it wouldn't be a stretch to see some sort of correction. We have a lot of earnings ahead of us so there will still be individual winners and losers regardless of what the overall market is doing. With health care floundering and a Washington that appears as though it can't get anything done we are likely going to see a lot of speculation that tax reform is headed down the same path as health care. If we don't get tax reform that will ultimately put a strain on the markets in my opinion. Lets see how we close out the week but there are some warning flags out there so its important to make sure you have a clearly defined plan for your portfolio and your individual trades.
Equities are gapping down in premarket after the GDP report with the dollar showing some weakness while gold and oil are getting a little bounce.
Keep an eye on UVXY TVIX LABD TZA for day trade opportunities if the market weakness accelerates.
Do not chase anything and know your risk reward.
Today's Economic Calendar
8:30 GDP Q2
8:30 Employment Cost Index
10:00 Consumer Sentiment
1:00 PM Baker-Hughes Rig Count
- IMGN Earnings potential day trade or higher risk swing potential 7 test and roll
- AGRX Pr potential day trade opp do not chase
- TWTR Potential swing or long term hold on pull to support
- IPI flirting with a 3 roll lots of fund buying in this area earnings are next wed potential lotto swing or day trade opp full disclosure I own some and recently scaled out
- BLRX potential day trade opp with it flirting with the 1 dolla holla >do not chase
- FSLR gapper off earnings look for an intraday setup for a day trade
- CY more of a swing or long term hold good earnings flirting with a 15 roll more compelling for a swing on a pull to support
- GNC potential day trade looking for a red to green earnings were out yesterday
- KOOL potential day trade off pr look for intraday setup VERY tiny float do not chase and make sure there is some liquidity to get out. play size appropriate
- SIRI more of swing just broke out of key resistance thick stock the 5.50 range could be a good entry on a swing or longer term hold what was resistance could act as good support
- UCTT flirting with blue skies off earnings potential day trade or swing look for a good intraday setup or a pull to support
July 28th 2017 Free Friday Pre market Prep from Alpha Wolf Trading on Vimeo.
Be careful out there and best of success.
Have a great weekend.
