Click here to register for the webinar, which begins at 4:30 p.m. ET.
S&P 500 overview
- Few bearish signals after triangle breakout.
- Lack of correlations, inter-market warning flags.
- Sectors bullish as investors rotate into risk-on areas like XLB, EEM.
- News sentiment bullish because bad news (trade wars) fading, while good news (earnings) not fully priced in.
- Seasonality may favor complacent drift up, followed by quick drops.
- @ES likely to give 5-10 point drops, followed by rebounds.
Global picture brighter
- U.S. dollar (@DX) slid as expected last week.
- Yuan allowed to gain as Beijing avoids playing hardball with forex.
- U.S., Mexico sign trade deal, replacing NAFTA.
- German Ifo strong as trade worries ease.
- Jerome Powell leaves the punch bowl.
- Click here for more.
Don’s watch list:
- American Eagle (AEO) reports Wednesday morning.
- Tesla Motors (TSLA): What the heck is going on?
- Chipotle Mexican Grill (CMG): Whacked by Wedbush.
- Nike (NKE) drifts higher a month before earnings.
- Pfizer (PFE): Buy the pullback?
Russell’s watch list:
- Cleveland Cliffs (CLF): Potential bullish continuation after strong earnings. Materials improving.
- Petrobras (PBR), Facebook (FB), Rio Tinto (RIO), Wynn Resorts (WYNN): Potential put-spread credit opportunities.
- Match (MTCH) probing new highs w/breakout potential.
- Caterpillar (CAT), Vale (VALE) breaking 50DMAs.
- Whiting Petroleum (WLL), Marathon Oil (MRO) have continuation potential if energy climbs.
- Twitter (TWTR): Will it fill bearish gap from July 27?
- XPO Logistics (XPO): Long-term secular/cyclical growth name breaking 50DMA.
- Microsoft (MSFT): October or November 110 calls (max gamma) could make sense.
- Walt Disney (DIS) holding $112 price zone.
- Options action:
Charts & Sectors:
- Strong rotation into global, materials. Safe havens perilous.
- Chips clawing back. Watch SMH around $109.40.
- Software blitzing higher as cloud business model flourishes: VEEV, SPLK.
- CRM reports Wednesday PM, NTNX on Thursday PM
- PVTL, QLYS on watch list.
- Small/new-tech on the rise: ZS, PS, ARLO
- Retailers mostly strong earnings: Watching WMT, TGT for pullbacks.
- Wednesday 8/29: GDP revision, crude-oil inventories.
- Rest of week: Are we even open?
- Next week: Payrolls, ISM, few earnings. China news?