HI Financial Services Commentary 03-01-2016
When you come to a fork in the road, take it. – Yogi Berra
Too much negativity!!! The US appears better than other places in our global economy
Long term short covering once we broke the 50 SMA on some indexes
Stabilization in Oil, China
Best first day of a month in 3 years and Historically March is a bullish month
Inflows into mutual funds but not with excessive volume
What’s happening this week and why?
Chicago PMI 47.6 vs est 52
Pending Home Sales -2.5 vs est .7
Construction Spending 1.5 vs est .5
ISM 49.5 vs est 49.0
Auto and truck sales knocked it out of the park !!!
Chins PMI last night were lower than expected but China offset these number by a 50 basis point cut in the interest brewing rates last week
Where will our market end this week?
Higher to near 2000 because there is no more resistance until 2000, market inertia
DJIA – Bullish with a big bounce off the 50 SMA
SPX – Bullish with a big bounce off the 50 SMA
COMP – NOT technically bullish yet and have quite a ways to go until you get to the 50 SMA
Where Will the SPX end March 2016?
What is on tap for the rest of the week?=
Tues: AZO, DKS, DLTR, MDT, ROST, TIVO
Wed: ANF, COST, VSLR
Thur: BKS, BURL, JSDA, JOY, SKUL, SWHC, KR, AVGO
Fri: BIG, SPLS
Tues: Construction Spending, ISM Index, Auto, Truck
Wed: MBA, ADP Employment, Fed Beige Book
Thur: Initial, Continuing Claims, Challenger Jobs, Productivity, Unit Labor Costs, Factory Orders, ISM Services
Fri: Ave Workweek, Non-Farm Payroll, Private Payroll, Unemployment Rate, Hourly Earnings, Trade Balance
Tues – DE:PMI Manufacture, Unemployment Rate
Wed – CN: General Services, PMI, JP: PMI Composite
Thursday – DE:EMU:FR: PMI Composite, EMU: Retail Sales
How I am looking to trade?
Today I added short puts to the 155 March 2016 long puts on BIDU. Stock has moved significantly so time to chase it up with shor t puts to “maybe” pay off a good portion of what I paid for the long puts to get thru earnings
Took Long puts off F, NVDA, ZION today
Looking to adjust AAPL (Covered Call), DIS protective put and V collar trades
www.myhurleyinvestment.com = Blogsite
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