Good morning
It's Sunday morning and there are a couple of new developments that could rattle the markets in the upcoming week. North Korea conducted a hydrogen bomb test that was so powerful it triggered an earthquake. As the country deals with the ramifications of hurricane Harvey we have another hurricane Irma developing and it could make landfall in the United States.
NAFTA talks continue through weekend
Mexico will not accept any NAFTA conditions that "goes against our dignity as a nation," President Pena Nieto announced during his fifth state of the nation address.
"The relationship with the new government of the U.S., like any other nation, must be based on irrevocable principles: sovereignty, defense of the national interest and protection of our migrants."
Trade negotiators from Mexico, Canada and the U.S. are working through the weekend to present more proposals to revamp NAFTA, an accord that underpins more than $1.2T in annual cross-border trade.
Last week we saw an impressive bounce in several sectors and reclaimed some important technical levels as the bulls were able to retake control. I was cautious last weekend but as the week unfolded we were able to identify sectors that were demonstrating strength and opportunities for long short term trades. To be clear we remain in a long term uptrend but that does not mean we won't have short term weakness and volatility. It is extremely important to have a clear trade plan to play these opportunities where you know your entries and exits to calculate your risk reward. It's also important to adjust you position sizing when we have indicators that suggest caution is warranted.
BRICS summit kicks off in China
Leaders from Brazil, Russia, India, China and South Africa are gathering in Xiamen, China for the ninth summit meeting of the BRICS group of nations.
"Given the difference in national conditions, history and cultures, it is only natural we may have some differences in pursuing our cooperation," President Xi said in opening remarks. "However, enhancing collaboration the BRICS countries can achieve steady progress in our cooperation."
BRICS accounts for 23% of the world economy, 16% of foreign trade, 12% of outbound investment and contributes to more than 50% of global economic growth.
Trump prepping withdrawal from S. Korea trade deal - WaPo
Internal preparations for ending the deal are well along, according to the report, and the formal withdrawal process could begin as soon as this week. Behind the move is Trump's frustration that South Korea's newly-elected (in May) president isn't interested in accepting the White House's initial trade demands.
Among senior White House officials opposing the move, say sources, are national security adviser H.R. McMaster, Defense Secretary Jim Mattis, and National Economic Council chief Gary Cohn. Behind their opposition: With North Korea launching missiles and testing nuclear weapons, now's probably not the best time to isolate Seoul.
After the impressive run last week and the new developments occurring over the weekend it would not be shocking to see the markets take a pause or potentially pull back. Sectors to keep an eye on include gold and gold miners, biotech, healthcare, aerospace and defense, small caps, transportation, oil and energy, semiconductors.
We know that uncertainty can impact the markets and this weekends events could bring back some fear so as always we need to keep an eye on volatility TVIX UVXY and some of the sort biased ETF's for potential day trade opportunities if we get a pullback. TZA LABD SPXU SPXS. Do not chase or hold any size overnight with these and keep the size appropriate with your intraday trades.
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This weeks stocks to watch in the video
$DLNG $HOME $SCWX $RH $EPM $FCEL $BLDP $PLUG $KR $THC $CYH $HZN $XPLR $NTNX
Stocks 2 Watch 4 trading and investing Sept 5th -8th 2017 from Alpha Wolf Trading on Vimeo.
Key events are scheduled for the companies listed below during the upcoming holiday-shortened week.
Notable earnings reports: Dave & Buster's Entertainment (NASDAQ:PLAY) and Hewlett Packard Enterprises (NYSE:HPE) on September 5; Restoration Hardware (NYSE:RH), Guidewire (NYSE:GWRE) and JinkoSolar (NYSE:JKS) on September 6; Barnes & Noble (NYSE:BKS), Cloudera (NYSE:CLDR), Verifone (NYSE:PAY), Sigma Designs (NASDAQ:SIGM) and Dell Technologies (NYSE:DVMT) on September 7; Kroger (NYSE:KR) on September 8.
IPO quiet period expirations: YogaWorks (NASDAQ:YOGA), Ranger Energy Services (Pending:RNGR), Zealand Pharma (Pending:ZEAL) on September 5.
IPO lockup period expirations: Beyondspring (NASDAQ:BYSI) and Sienna Biopharmaceuticals (Pending:SNNA) on September 5; Presidio (NASDAQ:PSDO) on September 6.
Secondary offering lockup expirations: SiteOne Landscape (NYSE:SITE), J. Jill (NYSE:JILL), Upland Software (NASDAQ:UPLD), National Commerce (NASDAQ:NCOM), BeyondSpring (BYSI) on September 5; Pareteum (NYSEMKT:TEUM), Presidio (PSDO), MidSouth Bancorp (NYSEMKT:MSL), Digiliti Money Group (NASDAQ:DGLT) on September 6; CalAtlantic Group (NYSE:CAA) on September 7; Sarepta Therapeutics (NASDAQ:SRPT) and Hyatt Hotels (NYSE:H) on September 8.
Notable annual meeting: Finisar (NASDAQ:FNSR) and Tucows (NYSEMKT:TCX) on September 5; Virtusa (NASDAQ:VRTU) and ViaSat (NASDAQ:VSAT) on September 7.
Sales update: Ameritrade (NASDAQ:AMTD) on September 5.
Special shareholder meeting: Staples (NASDAQ:SPLS) on September 6; Tandem Diabetes Care (NASDAQ:TNDM), Capital Bank Financial (NASDAQ:CBF) and First Horizon National (NYSE:FHN) on September 7.
Analyst/investor meeting: Humana (NYSE:HUM) on September 5; MasterCard (NYSE:MA) and Proofpoint (NASDAQ:PFPT) on September 7.
Business update call: FLIR Systems (NASDAQ:FLIR), Maxim Integrated Products (NASDAQ:MXIM), Nutanix (NASDAQ:NTNX) and Navidea Biopharmaceuticals (NYSEMKT:NAVB) on September 5; Synergy Pharmaceuticals (NASDAQ:SGYP) and Alnylam Pharmaceuticals (NASDAQ:ALNY) on September 7.
Barclays Global Consumer Staples Conference: Food executives will be among those talking shop at the three-day event. The sector is under watch after Campbell Soup (NYSE:CPN) posted alarming earnings and amid debate over the impact of Amazon's (NASDAQ:AMZN) Whole Food pricing strategy. Presenters include ConAgra Brands (NYSE:CAG), J.M. Smucker (NYSE:SJM), Hostess Brands (NASDAQ:TWNK), Kellogg (NYSE:K), Pinnacle Foods (NYSE:PF) and Hain Celestial (NASDAQ:HAIN).
Self-driving car watch: The autonomous vehicle industry looks for a boost from D.C. on September 6 with the House due to vote on a bill that could speed up development. Samsung (OTC:SSNNF, OTC:SSNLF), Waymo (GOOGL, GOOG), Uber (Private:UBER), Lyft (Private:LYFT), General Motors (NYSE:GM), Ford (NYSE:F), Tesla (NASDAQ:TSLA), Volkswgen (OTCPK:VLKAY), Volvo (OTCPK:GELYY) all have EV plans moving forward.
Barron's mentions: Hurricane Harvey is one of the most devastating storms of all time, but property and casualty insurers have heavy excess capital and can manage the claims that could reach $25B. Meanwhile, despite some short-term volatility, there's opportunity in refiners. With software beginning to "invent" products, Flex (NASDAQ:FLEX), Ansys (NASDAQ:ANSS) and New Relic (NYSE:NEWR) are among "new tech arms merchants." Nathan's Famous (NASDAQ:NATH) is growing profits while at a 40-45% discount to NAV.
Sources: EDGAR, Bloomberg, Nasdaq.com. Seeking Alpha
