Top alert for 2014: MYGN (50%), LIVE (45%), CTIC (115%), KOOL (88%), PZG (32%), GOLD (6%), IOC (6%), RSOL(18%), PLUG (70%), IMMU (26%)

Tuesday, June 26, 2012

Trading Strategies For June 27th: Take a break

Today stock market was able to survive all the negative headlines, right from overnight bad bond auction of Spain and Italy to 5 month low US consumer confidence to Egan Jones downgrading Germany, and all the credit goes to ECB's fine tuning operation.  As I have said in all my previous articles, whenever ECB carried fine tuning operation on Tuesday, market have rallied or atleast opened higher. It also provided cushion for negative headlines. This market is providing no respect to rating agencies like Fitch, Moody, S&P or Egan jones. Stock market have managed to rally on every downgrades whether its countries or bank.

Expect very thin volume and lots of rumor ahead of July 4th long weekend. If your not in hurry take a break and start trading next week, when there is less rumor and you can predict the market more accurately.

For Bullish sentiment to continue: Dow needs to break 12570, while S&P500 needs to break 1324. 

For Bearish sentiment to continue:  Dow needs to break 12469, while S&P500 needs to break 1318 followed by 1316

In the chart below Red circle and arrow represent Bearish sentiment, Blue Circle and arrow represent Bullish sentiment.

Dow 1 month chart

S&P500 3 day chart
 Dow 1 day chart

In Forex Currency trading, Eur/Usd is at 1.2503 (+0.1%), Usd/Cad is at 1.0243 (-0.03%) and Aud/Usd is at 1.0062 (+0.01%).  US dollar Currency Index is at 82.33(-0.04%)

CBOE Volatility Index VIX was down 3.24% at 29.72

GOLD is at 1572 (-2.40)

SILVER is at 27.05 (-0.33)

Earning Before Market openLEN($0.17 eps estimate, prev year eps $0.07), MKC ($1.60 eps estimate, prev year eps $0.56)MON ($1.60 eps estimate, prev year eps $1.26), UNF ($0.99 eps estimate, prev year eps $0.93)

Earnings After market Close:

CWST (-$0.35 eps estimate, prev year eps $0.63), JRJC, FLOW($0.04 eps estimate, prev year eps $0.01), OMN ($0.14 eps estimate, prev year eps $0.16), PAYX ($0.17 eps estimate, prev year eps $0.38), GIS ($0.59 eps estimate, prev year eps $0.52)

After hours big gainerAVAV, ANTH, ZGNX, UTHR, OREX, BPZ, WFR

After hours big loser: CCG, UIS, HRG, OMER, ORLY, MDVN, IACI.


Stocks for Option Trading: CAT, XOM, SPY, QQQ, IBM, PCLN, AAPl, WLT, PCX, GOOG, MT.

Upcoming FDA approval  : ARNA on June 27th and BMY/PFE on Jun e 28th. 

Economic calendar:


8:30 amDurable goods ordersMay0.0%0.0%
10 amPending home salesMay---5.5%

Forex Currency event:

US Core Durable Goods Orders: Wednesday, 12:30.U.S. core durable goods excluding transportation items dropped unexpectedly in April by 0.6%, contrary to predictions of 1.1% growth, following 0.8% decline in March. Meanwhile durable goods increased 0.2% in April less than the 0.5% rise anticipated. An increase of 1.0% is expected this time.

US Pending Home Sales: Wednesday, 14:00.: The number of contracts for the purchase of existing homes, plunged unexpectedly by 5.5% in April, the lowest level since December, following a 3.8% gain in March. It remains to be seen whether this is a temporary relapse, since most housing indicators are currently up. A climb of 1.3% is anticipated now.

Washington Event:

10 a.m.: Hearing on the interaction of welfare and tax credit programs and the impact on work, at the House Ways and Means Committee.

Euro Zone Debt Crisis Event:

June 28/29 - Summit of EU heads of state and government in Brussels: leaders to consider plans for greater euro zone integration jointly drawn up by EU Commission President Jose
Manuel Barroso, ECB President Mario Draghi, Eurogroup Chairman Jean-Claude Juncker and EU Council President Herman Van Rompuy.To be followed by meeting of euro zone leaders.

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