Good morning
Apple earnings came in with decent numbers but the markets feel like they are itching for a reason to sell off a bit. Semiconductors and tech will likely be under some pressure today. I have been saying for the last couple of weeks that we have several gaps on the daily for multiple sectors & indexes that could potentially fill and that a pause or pullback would be healthy. However, nobody knows how deep or how long a pullback or correction could last or when one may occur.
We have the Fed announcement today and that could be a market moving event depending on the tone of the Fed and their interpretation of recent economic data. Car sales came in weak, the President is tweeting about how a government shutdown would be a good thing, North Korea tensions continue to rise. Earnings have been good but there are concerns that the President's proposals for growing the economy, tax restructuring, fixing health care. and a large infrastructure initiative are nothing more that pipe dreams and that congress or even the Presidents own party are unlikely / unwilling to get anything accomplished. I don't share this stuff to scare anyone, Its already well known, all you have to do is turn on the Tv or listen to the radio. So there are plenty of things out there that can impact the markets in a negative way.
Reality is we never know what will flip the switch and change the attitude or tone of the markets. We have to be prepared for any potential outcome. After a nice run like we have had it never hurts to lock some profits and build some dry powder for potential opportunities when the markets creates them.
Oil got a little bump last night after the ADP report and we get the petroleum status report @ 10.30 ET & that could be a catalyst. Keep an eye on energy and oil names. Volatility could come into play so also keep an eye on UVXY and TVIX for day trade opps if markets roll over.
Today's Economic Calendar
7:00 MBA Mortgage Applications
8:15 ADP Jobs Report
8:30 Gallup U.S. Job Creation Index
8:30 Treasury Refunding Quarterly Announcement
9:45 PMI Services Index
10:00 ISM Non-Manufacturing Index
10:30 EIA Petroleum Inventories
2:00 PM FOMC Announcement
Do NOT chase have a plan for every trade and know your risk reward!
1. RGLS potential day trade red to green 2 test earnings are tomorrow day trade only
2. FSLR potential day trade or swing on a pull to support solar space could get some negative headlines from SEC investigation into TSLA and RUN so be careful
3. LNTH potential day trade or swing on a pull to support off earnings if it takes out 14 with authority could have a runner blue sky all time highs
4. PIRS gapper of nice news but a long ways away from having an approved drug day trade only look for intraday setup do not chase
5. WTW earnings gapper raised guidance ran into earnings do not chase look for a pullback to support could be a swing or a day trade watch the volume
6. GNMK hot looking potential flat top break out worth watching for day trade or potential swing
7. FEYE full disclosure I have a small long term hold position looking to potentially add off earnings on a pull to 13 could be a scalpswing or long term hold play depending on your style
8. MYGN gapper huge short interest could be a day trade or swing off earnings >Swing on a pull to prior resistance which should now act as support
9. ESES big gapper off nice news of a 50 million dollar contract > earnings tomorrow they need cash do not chase! Day trade only or may you hold a few lottos into earnings after locking a nice profit
10. MTOR earnings hot daily could be a day trade or set up for a swing
May 3rd 2017 Pro Premarket Prep from Alpha Wolf Trading on Vimeo.
