Downloads are available here. TradeStation’s ideas on TradingView are available here.
Register for Market Trends here.
Sizing Up the S&P 500
- Index -1.6% yesterday, biggest drop since September 21.
- Potential levels:
- 4800 (weekly peaks in December, early January)
- 4765 (50% retracement of breakout above July high)
- RSI falling from overbought, returning into Keltner Channel.
- Potential catalysts:
- Non-farm payrolls tomorrow
- CPI on 2/13
- Fed minutes on 2/21
Key News
- Hawkish news:
- December JOLTs job openings 9.03mln vs 8.75mln est. November revised up.
- Fed wants more confidence before cutting rates. Powell downplays March.
- Dovish news:
- Chinese manufacturing remains in contraction.
- U.S. Treasury planned issuance 6% below estimates
- Crude-oil, gasoline inventories increase
- Q4 employment cost index +0.9% vs +1% estimate
- Tesla (TSLA) sees $10 billion of capex, partly to build superchargers.
- Good bank, bad bank:
- Oppenheimer: BAC, C, JPM, MS, UBS are “significantly undervalued”
- New York Community Bancorp (NYB) craters on unexpected loss, dividend cut (resulting from acquisitions of Signature Bank, Flagstar Bank).
- Consumer confidence at 2yr high on inflation, employment optimism.
Mover of the Week: Photronics PLAB
- Photomasks for semiconductor production
- 12/13: Stronger demand in April, July fiscal quarters forecast
- Management cited chip cycle upswing (echoing SIA)
- Bloomberg: U.S. chip restrictions boosting Chinese demand for chip-capital equipment
- PLAB trades for 15x EPS, 2x sales.
- Rivals like AMAT 20x, 5x. LRCX 28x, 8x.
- PLAB +55% in last year
Upcoming Events
- Earnings this afternoon: AAPL, AMZN, META, MCHP
- Fri 2/2: Non-farm payrolls
- Earnings: XOM, CVX, ABBV
- Mon 2/5
- Earnings: CAT, MCD, ON, PLTR
- Tue 2/6
- Earnings: F, LLY, AMGN, ENPH
- Wed 2/7
- Earnings: BABA, UBER, ARM, DIS, PYPL
Security futures are not suitable for all investors. To obtain a copy of the security futures risk disclosure statement visit www.TradeStation.com/DisclosureFutures.
Exchange Traded Funds (“ETFs”) are subject to management fees and other expenses. Before making investment decisions, investors should carefully read information found in the prospectus or summary prospectus, if available, including investment objectives, risks, charges, and expenses. Click here to find the prospectus.
Options trading is not suitable for all investors. Your TradeStation Securities’ account application to trade options will be considered and approved or disapproved based on all relevant factors, including your trading experience. See Characteristics and Risks of Standardized Options.
