Day Trading Thoughts For Wed. Feb. 25

E

erikrkolodny

ET Sponsor
In this era of negativity, particularly amidst the gains of yesterday, here are a few positive signs which hopefully maybe perhaps indicate that the pace of the economy’s decline is at least slowing if not gradually coming to an end- should of course the banking crisis pass without further incident: producer prices have risen for the last two months intonating that the risk of deflation is less than it’d appear; furthermore, the consumer price index rose for the first time in six months in January. The index of LEI (leading economic indicators) has also increased for the last two months indicating forward underlying strength in the economy. Despite stocks like Dryships (DRYS) failing to show life, the Baltic Dry Shipping Index has doubled from its low. Pending home sales rose in December with applications for mortgages having risen as well in recent weeks. Retail sales went up about 1% in January (even if most of the sales undoubtedly occurred at relatively low prices). New orders for consumer goods went up in January. LIBOR has fallen to just over 1%, down from 5% merely weeks ago indicating liquidity is in the global system. The corporate bond market had the most activity last month than it did in any month since May. Is the economy ready to blast off? No. There is a crisis of confidence and nobody knows how much toxicity exists on the balance sheets of the world’s companies. For day traders, all of these aforementioned factors in this piece offer evidence as to why the market can spring at any given time as it did yesterday; all it took was JPM indicating that things were at least stable to spark a sharp bounce yesterday. Thus, be even more attuned to the political and economic ramifications of any given numbers and policies- and be ready to trade off of said data.

Markets throughout Asia bounced for the most part with Tokyo up 2% or so. European bourses also bounced on the heels of Wall Street’s performance yesterday. Nothing dramatically changed from last night to this morning, but there is a little more short covering in the financials masking some overall market weakness. Look for the banks to lead the way today; some more short covering is likely to ensue as long as the financials hold up OK. Overall, it’ll likely be a fairly choppy session and quieter than yesterday.


Reiterating-
Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-


Good- The following stocks have good news and/or a strong technical pattern

MELI- decent earnings

RRC- beat earnings guidance

CRI- decent earnings

CBI – good earnings

MF- buying back debt

NTRS- closed on the high

KPPC- closed near a high

EGLE- closed on a high

OB- closed on a high

DIN- great earnings

DLM- surprisingly good earnings

Bad-The following stocks have bad news and/or a weak technical pattern

FSLR- beat earnings by a lot, but warned of softening demand for next quarter

WYNN- atrocious earnings

XCO- bad earnings

HCN- bad earnings

HLF- bad earnings

CCI- warned for the quarter

DWA- bad earnings

FCSX- traded sharply lower after-hour as they could potentially default

HPY- closed on the low of the day

ARP – closed on the low

MAPP –closed near a low






Earnings:


WED FEB 25 BEFORE

ABK BRY CETV

CMS CNP DIN

DLM DLTR DNR

EV FTR GAS

HK KBR

KWK LXP MSO

PEI SCI SJM

SKS SPW TJX

VMED

WED FEB 25 AFTER

AEL AGO ATN

CLF COGT CRM

DCI EQY ES

ESRX FLR FLS

GDP GVA LTD

MEDX MRX NTES

NUVA PXP PCR

PDGI PSYS TRLG

URI



Good luck today.


Erik R. Kolodny
 
Quote from erikrkolodny:

In this era of negativity, particularly amidst the gains of yesterday, here are a few positive signs which hopefully maybe perhaps indicate that the pace of the economy’s decline is at least slowing if not gradually coming to an end- should of course the banking crisis pass without further incident: producer prices have risen for the last two months intonating that the risk of deflation is less than it’d appear; furthermore, the consumer price index rose for the first time in six months in January. The index of LEI (leading economic indicators) has also increased for the last two months indicating forward underlying strength in the economy. Despite stocks like Dryships (DRYS) failing to show life, the Baltic Dry Shipping Index has doubled from its low. Pending home sales rose in December with applications for mortgages having risen as well in recent weeks. Retail sales went up about 1% in January (even if most of the sales undoubtedly occurred at relatively low prices). New orders for consumer goods went up in January. LIBOR has fallen to just over 1%, down from 5% merely weeks ago indicating liquidity is in the global system. The corporate bond market had the most activity last month than it did in any month since May. Is the economy ready to blast off? No. There is a crisis of confidence and nobody knows how much toxicity exists on the balance sheets of the world’s companies. For day traders, all of these aforementioned factors in this piece offer evidence as to why the market can spring at any given time as it did yesterday; all it took was JPM indicating that things were at least stable to spark a sharp bounce yesterday. Thus, be even more attuned to the political and economic ramifications of any given numbers and policies- and be ready to trade off of said data.

Markets throughout Asia bounced for the most part with Tokyo up 2% or so. European bourses also bounced on the heels of Wall Street’s performance yesterday. Nothing dramatically changed from last night to this morning, but there is a little more short covering in the financials masking some overall market weakness. Look for the banks to lead the way today; some more short covering is likely to ensue as long as the financials hold up OK. Overall, it’ll likely be a fairly choppy session and quieter than yesterday.


Reiterating-
Please understand that if the ideas do not get to the hoped for set-ups cited below, more often than not, one should not blindly trade the symbol next to said idea.
If the whole story is not there -
If something is good, assume either a short thru unchanged or an A-B-A2 based on direction of the market unless specifiedIf something is bad, assume either a buy thru unchanged or an A-B-A2 (preferably to the downside in a downside market and the upside in an upside market) based on direction of the market unless specified-


Good- The following stocks have good news and/or a strong technical pattern

MELI- decent earnings

RRC- beat earnings guidance

CRI- decent earnings

CBI – good earnings

MF- buying back debt

NTRS- closed on the high

KPPC- closed near a high

EGLE- closed on a high

OB- closed on a high

DIN- great earnings

DLM- surprisingly good earnings

Bad-The following stocks have bad news and/or a weak technical pattern

FSLR- beat earnings by a lot, but warned of softening demand for next quarter

WYNN- atrocious earnings

XCO- bad earnings

HCN- bad earnings

HLF- bad earnings

CCI- warned for the quarter

DWA- bad earnings

FCSX- traded sharply lower after-hour as they could potentially default

HPY- closed on the low of the day

ARP – closed on the low

MAPP –closed near a low






Earnings:


WED FEB 25 BEFORE

ABK BRY CETV

CMS CNP DIN

DLM DLTR DNR

EV FTR GAS

HK KBR

KWK LXP MSO

PEI SCI SJM

SKS SPW TJX

VMED

WED FEB 25 AFTER

AEL AGO ATN

CLF COGT CRM

DCI EQY ES

ESRX FLR FLS

GDP GVA LTD

MEDX MRX NTES

NUVA PXP PCR

PDGI PSYS TRLG

URI



Good luck today.


Erik R. Kolodny
More...

lol so copy pasting news feeds is strategy?
 
Quote from stock_trad3r:

lol so copy pasting news feeds is strategy?
More...

No, yelling BUY for the same shitty stocks like MA, GOOG, BIDU, V, PCX etc. is though. Moron.
 
Quote from stock_trad3r:

lol so copy pasting news feeds is strategy?
More...
Turder,
Learn to edit what you're quoting, so we don't have to scroll through the whole post. It's not hard to do.

Erik,
Keep up the good work.
 
Quote from stock_trad3r:

lol so copy pasting news feeds is strategy?
More...

Erik is making a contribution and offering information a reader may not be aware of in addition to a professional perspective. His daily posting has helped me regularly.

I read a lot but seldom post. I felt bad for you in some threads. Now I realize you are just mean spirited.
 
Quote from l2tradr:
No, yelling BUY for the same shitty stocks like MA, GOOG, BIDU, V, PCX etc. is though. Moron.
More...
+1

turder, didn't you say you'd leave this site if you're idiotic perma-bull predictions were shown to be the fantasies of a teenager? You take away from the site. Erik's post are apparently read by quite a few people and help them. Why don't you go back to studying for your night school exams? Seriously, girl. I figured even you wouldn't be so stupid as to believe that after making a complete ass of yourself on here, it would be a good idea to randomly troll threads that actually contribute something.
 
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