Fed FOMC meeting turned out be non event as expected and now everything depends on ECB's Draghi Conference at 8.30 am EST. Blame it all on Draghi but whatever comes out of the ECB conference, this market is well ahead of where it should be. Stock market computer would like to hear "unlimited", "LTRO 3", "Bond Purchase Program", "Bank License" or else the "sell program" will kick in. As said in my last article,"ECB has two days to save Euro" Buy DUST (it was up 12%) at onetime, and GLL (was up 3%) as the expectation of easing faded away and GLD, SLV, AGQ were all down. Keep this stocks in your watching because if ECB doesnt cut more then 50 bps tomorrow, DUST, EUO and GLL will be good for short term. But if ECB decides to carryout LTRO 3 or bond purchase program (which is illegal as per treaty) then buy GLD, SLV, AGQ, FXE. The other non event to watch is jobless claim at 8.30 am EST which is expected to show 370k. Jobless claim has been revised higher every week so this economic data doesn't matter anymore.
Today we also saw "flash crash 2" in 148 symbol which was ignored completely by rest of the market. On a normal days, this news would have caused panic sell but in low volume market it didn't made any difference.
Based on the chart, stock market is expected to open lower tomorrow unless ECB announces LTRO3. For bullish sentiment to continue Dow needs to break 13,010 and S&P500 needs to break 1377 and for bearish sentiment to continue, Dow needs to break 12,922 and S&P500 needs to break 1368.
Trading strategy for August 2nd: Breaking breakpoint will accelerate upside or downside movement
UVXY: If 7.32 is broken, it will rally upside and below 7.10 is a sell signal.
TVIX: 3.47 is a buy signal below 3.32 is sell signal.
AAPL: 609.41 is key breakpoint on upside, 599.5 is key breakpoint on downside.
GOOG: 632.78 is key breakpoint on upside, 621.9 is key breakpoint on downside.
FIRE: 43.09 is key breakpoint on upside, 41.86 is key breakpoint on downside.
FRAN: 30.07 is key breakpoint on upside, 28.01 is key breakpoint on downside.
NPSP: 7.46 is key breakpoint on upside, 6.99 is key breakpoint on downside.
Trading strategy for August 2nd: Breaking breakpoint will accelerate upside or downside movement
UVXY: If 7.32 is broken, it will rally upside and below 7.10 is a sell signal.
TVIX: 3.47 is a buy signal below 3.32 is sell signal.
AAPL: 609.41 is key breakpoint on upside, 599.5 is key breakpoint on downside.
GOOG: 632.78 is key breakpoint on upside, 621.9 is key breakpoint on downside.
FIRE: 43.09 is key breakpoint on upside, 41.86 is key breakpoint on downside.
FRAN: 30.07 is key breakpoint on upside, 28.01 is key breakpoint on downside.
NPSP: 7.46 is key breakpoint on upside, 6.99 is key breakpoint on downside.
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| Dow expected to open lower unless ECB comes up with LTRO3 |
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| S&P500 has no support till 1364 and its expected to open lower. |
| TIME (ET) | REPORT | PERIOD | ACTUAL | FORECAST | PREVIOUS |
|---|
| 8:30 am | Weekly jobless claims | 7-28 | 370,000 | 350,000 | |
| 10 am | Factory orders | June | 0.3% | 0.7% |
Global Economic Calendar
| TIME (ET) | REPORT | PERIOD | ACTUAL | PREVIOUS |
|---|
| 7 a.m. | Bank of England decision | 0.5% | ||
| 7:45 a.m. | European Central Bank decision | 0.75% | ||
| 8:30 a.m. | ECB press conference |
After Hours percentage gainer and loser
| Percentage Gainers | |||||||||
| Issue | Symbol | Volume | Last | Chg | % Chg | High | Low | ||
| First Solar | FSLR | 2,135,806 | $17.60 | 2.80 | 18.92 | $18.00 | $14.55 | ||
| Yelp | YELP | 182,983 | 21.60 | 2.78 | 14.77 | 22.33 | 18.81 | ||
| Cavium | CAVM | 117,908 | 31.61 | 4.06 | 14.74 | 32.00 | 27.40 | ||
| Green Mountain Coffee Roasters | GMCR | 5,017,912 | 20.18 | 2.27 | 12.67 | 20.85 | 15.00 | ||
| SunPower | SPWR | 47,272 | 4.10 | 0.32 | 8.47 | 4.15 | 3.78 | ||
| Percentage Decliners | |||||||||
| Issue | Symbol | Volume | Last | Chg | % Chg | High | Low | ||
| Halozyme Therapeutics | HALO | 743,851 | $3.88 | -4.68 | -54.67 | $8.57 | $3.75 | ||
| Abercrombie&Fitch | ANF | 1,479,084 | 28.52 | -5.50 | -16.17 | 34.66 | 28.00 | ||
| Weight Watchers International | WTW | 280,091 | 42.51 | -6.28 | -12.87 | 50.54 | 41.85 | ||
| Zumiez | ZUMZ | 38,859 | 31.89 | -4.04 | -11.24 | 36.16 | 31.40 | ||
| Stone Energy | SGY | 14,326 | 24.07 | -2.27 | -8.62 | 26.65 | 24.07 | ||
