Thursday, 12 October 2017

10am update - opening weakness

US equities open moderately weak, as short term rising trend from the sp'2488 low has been broken. First soft target is the 2540/37 micro gap. VIX is moderately higher, but still only in the low 10s. WTIC -1.8% in the $50s, ahead of the EIA report.




*keep in mind, we've the EIA Pet' report at 11am. That will likely show a net build. If WTIC loses the $50 threshold, that'd certainly help drag energy stocks lower, and to some extent... the main market.

The lower hourly bollinger - sp'2545/44, will offer support this morning, with secondary of the micro gap of 2540/37. Any price action <2537 looks very difficult. VIX hourly chart is offering a sharper move from 11am onward.

notable stock, MU, daily

Micron' has increased the share offering by another $200million to $1.2bn. The board are clearly VERY confident, and their actions are from a position of strength. There is an earnings gap of 36/34, there is risk that would be at least partly filled if sp'2475/61. Regardless, mid term outlook is hyper bullish, soft target 45/50, and then $100.. which is absolutely viable in 2018. I'd suggest anyone look at NVDA from early 2016 onward, not that I'm calling MU the next NVDA.

Cramer highlighting Micron's F' PE is only in the 5s.

weakness, DIS, daily

Disney continues to struggle. The recent low of $96.20 looks extremely vulnerable, and once broken, will offer lower trend target of the 94/93s. Downgraded by Guggenheim to $105. Note today has seen a bearish MACD cross.

Meanwhile.. s/t bullish hysteria in SNAP

Bullish follow through after yesterday's Credit Suisse target of $20. Big resistance 16.50/17.00.The bolder bears will be shorting, with a stop around the IPO threshold. Cyclically on the high side.