Thursday, 12 October 2017

Pre-Market Brief

Good morning. US equity futures are a little weak, sp -4pts, we're set to open at 2551. USD is +0.1% in the DXY 92.80s. The precious metals are fractionally positive, Gold +$2, with Silver +0.2%. WTIC is -1.4% in the $50s.




C' earnings were fine. EPS $1.42, like most other financials, giving a PE in the 12s. JPM results were also fine, with EPS of $1.76. Its notable that neither stock are significantly spiking on the news

Yesterday saw an hourly equity bullish MACD cross in the closing hour. A rollover, with moderate weakness is due today. The bigger daily cycles won't offer anything significant until after the weekend.

Its notable that ANY degree of opening weakness will break short term rising trend, that goes back to the sp'2488 low. That will open up the two micro gaps of 2540/37, and 2521/19. Clearly, the latter looks out of range today, unless there is some sporadic 'spooky news', which would include any Trump comments on North Korea.

re: VIX. We're clearly on the low side, and a push into the 11/12s is well overdue.

early movers

AAPL -0.2%, as price structure remains a bear flag
ABX +0.2%, with gold
AMD -0.4%, broadly choppy
APA -0.5% in the $41s. Barclays downgraded them to $26 yesterday.
BAC +0.1%, ahead of Friday earnings

BABA -0.4%.. but broadly super strong, headed for $200.
C +0.4% on earnings
CHK -0.5%, pressured via oil
CSCO -1.2%, s/t over-stretched
DIS -0.8%, s/t momentum is rather bearish indeed
F -1.1%, cooling after recent sig' gains

JPM -0.1% on earnings
JD +0.4%, but looks highly vulnerable to reversing today.
MU -0.7% in the $41.30s, with a notable earnings gap of 36/34.
TSLA -0.7%, broadly choppy though
TVIX +0.5%, with VIX +2.8% at 10.13
X -0.4% in the $25.10s, the 23s seem viable if sp'2474/61

overnight markets

Its very subdued out there, and fractionally mixed...

Japan: +0.3% at 20954
China: -0.1% at 3386
Germany: currently -0.1% at 12957
UK: currently +0.3% at 7557
Spain: currently -0.1% at 10271

Something I've just noticed appear on the schedule, Yellen is due to speak this Sunday (9am), at some conf' in Washington. Its not just her though, she'll be with the head of the PBOC, BoJ, and the vice-pres' of the ECB. That will merit serious attention, not least in terms of whether the other central banks are with her on the policy of QT that is beginning this month.

Have a good Thursday

back at 10am...