S&P Emini & Unusual Options Activity Daily Vid Recap 7.6.2012
Category: Blog
S&P Emini Pivot Points for 7.9.2012
Cornes at the Close 7.6.2012
I remain bearish on the ES as stock futures took a dive after this mornings 7:30 am CDT jobs number and continued to fade throughout the day, to slightly rise near the close. EUR/USD futures fell about 30 pips following the release, falling to a total of 112 pipps into the afternoon, hitting new lows of $1.2271. I feel that $1.23 was a key support level for the Euro and am curious to see how the $1.22 level will be tested.
S&P 500 futures closed at 1349.50, down 12 points, NASDAQ futures fell 36.75 points to 2605.75, and Dow Jones Industrial Average futures fell 123 points to 12709.00.
Jamba Inc. (JMBA) rose 9.87% after expectations that the country’s heat wave would increase sales of their signature smoothies.
Today’s fall Informatica’s (INFA) shares sparked worry across the software industry as Western Europe’s demand is falling. IBM Corp. (IBM) fell 1.99% and Tibco Software (TIBX) fell 6.32%.
Monday is a big day for earnings as Alcoa (AA) kicks off the Q2 earnings season with a negative outlook. Analysts’ consensus is that there is an oversupply in aluminum without guidance for higher demand.
Traders Exclusive Videos 7.6.2012
Trade of the Day (AA) 7.6.2012
Unprofitable: I lose money on this trade if AA closes above $8.57 or July 13, 2012. The most I can lose on this trade is the amount I sold the Spread for $.57.
Risk: $43 per 1 lot
Reward: $57 per 1 lot
Chart: Bearish overall , but looking for a good risk vs reward that it tests back lower
Notes: I am playing this as an even money bet that AA will sell-off next week on earnings.
UPDATE 7.9.2012 This Spread is worth $.60, but I am leaving this trade on until earnings today after the bell.
UPDATE 7.21.2012 I covered this Spread at $.26 on the sell-off to my measured move target of $8.20. Taking profits and moving on is how I roll.
Read more about futures by www.keeneonthemarket.com
Halftime Report 7.6.2012
The U.S. unemployment rate came in unchanged at 8.2%, and although nonfarm payrolls were stronger than last month, they came in 10K less than analysts’ expectations of 90K.
Gold futures slid $22.00 to $1587.40 and WTI crude futures fell $2.77 to $84.45.
Financial stocks had a steady fall across the sector after the weak jobs number. Bank of America (BAC) lost 1.42% and J.P. Morgan Chase lost 1.25%.
Alcoa Inc. fell 3.14% before their 2012 Q2 earnings release coming this Monday the 9th.
Among today’s biggest gainers, LaCrosse Footwear Inc. (BOOT) rallied 80.97% after Tokyo-based ABC Mart Inc. agreed to buy them out for $20 a share.
Informatica Corp. (INFA) fell 30.09% after lowering the business software developer’s guidance.
EUR/USD futures fell below $1.23 and were trading at $1.2283, down 118 pipps on the day.
David Cornes holds a degree in economics from the University of Montana.
Yorba Radio – Interview 7.5.2012
Chris Cruises the Globe 7.6.2012
Europe looks to be ending their 5 week rally with index’s currently showing red. The rate cuts proves to
not be what is needed, they seem to be signaling for more financing; when do you cut them off becomes
the question. London is at -.2%, Paris -.3, and Frankfurt .3. Spanish banks are down 1.5% after a big sell-
off, with BBVA currently down 5%.
The US seems to be following suit with our indices currently showing losses of .1%, and commodities
beginning low with crude, gold, and silver down, while natural gas is showing a 1% gain.
Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu
Movers and Shakers – INFA – 7.6.2012
Oppenheimer changed their price target for Informatica from $57.00 to $46.00 and Deutsche Bank downgraded their rating of shares from “buy” to “hold.” The downgrades came shortly after INFA reduced its second quarter earnings guidance to below Wall Street analysts’ estimates. INFA expects Q2 revenue to be within the $188 million to $190 million range, with non-GAAP earnings between 27 and 28 cents a share. Analysts expected earnings of $217.2 million and 37 cents respectively. INFA also agreed on a $100 million stock buyback.
Sohaib Abbbasi, Informatica Co.’s CEO admitted, “clearly, we did not adapt as rapidly as we should have to the changing macroeconomic environment, especially in Europe.” Mr. Abbasi plans to increase his company’s growth efforts to adjust for the contracting global economy.
David Cornes holds a degree in economics from the University of Montana.
Morning Rage 7.6.2012
As for the European crisis, the new Greek Prime Minister, Samaras, is supposed to
explain how he and his government are going to deal with Greece’s massive debt to
Parliament today. The debate will last three days and will hopefully yield a problem
solving solution.
Moving back to the U.S, the Employment Situation was announced this morning
and nonfarm payrolls are up 90,000 while the unemployment rate stayed at 8.2%.
Average hourly earnings were up 0.2% and the average workweek stayed at 34.4
hours.
While the employment report did not bring any horrible news the stock market is
down today with the S&P 500 down 0.47%, 10-year treasuries are down 0.62% and
oil is down 1.88%. The only increase was with the dollar, it was up 0.05% at the
open.
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session with Andrew Keene!
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