Good morning! Stock futures are plunging after an overnight 4%+ rout in China and an ugly jobs report this morning.
It's UPB here! JB back on Monday. Clearly this week is all about downside. After starting out with a sharp move lower on Monday, the market recovered a lot of those losses. However the now daily morning declines are seeing less and less dip buying. The failed tests to break and hold 2800 have clearly exhausted the market.
I highlighted where I think the selling may stop and also what may occur when it does here:
Also the morning reads:
S&P500 futures are showing a week ending how it started. With a big move to the downside.
It's Friday, and we've had quite a few Friday flops over the last 6 months. Today may be one of those days. My plan for today, as far as trading a few Friday lottos, is wait for that rip higher off the lows.
I would like to see a bounce out of the gate and then look for some puts about an hour into the session.
$AMZN looks particularly interesting this morning.
A break of $1600 could trigger a move to $1550 or so. Today?
It's possible. Of course premiums will be amped at the open, which is why I will wait for that bounce that will hopefully come.
Other names I will look to trade with a similar perspective:
$NFLX and $ULTA.
I think $UTLA could get an extra tug lower after being dropped as a Top buy at $JPM this morning.
Clearly this jobs report will push any rate hike talk well off the back burner. It may even trigger increased talk of more QE. Yesterday the ECB put their foot back on the gas pedal. Is the FED that far behind?
Clearly the Pandoras box opened in December 2008 and March 2009 is not ever going to get shut. Ultimately this terrible jobs report could be what sends this market to new all time record highs, as crazy as that sounds. But for now, I think the market remains at risk for more downside short term.
- Upgrades:
- ACI Worldwide (ACIW) upgraded to Overweight from Equal-Weight at Stephens; tgt raised to $38
- Applied Industrial (AIT) upgraded to Buy from Neutral at Longbow; tgt $70
- AutoWeb (AUTO) upgraded to Buy from Neutral at B. Riley FBR; tgt $5
- Buckeye Partners (BPL) upgraded to Buy from Neutral at UBS; tgt raised to $36
- Genpact (G) upgraded to Outperform from Market Perform at Wells Fargo
- Horizon Pharma (HZNP) upgraded to Overweight from Equal-Weight at Morgan Stanley; tgt $32
- Methode Electronics (MEI) upgraded to Buy from Hold at Craig Hallum; tgt $42
- PNM Resources (PNM) upgraded to Neutral from Underperform at Mizuho; tgt raised to $43.50
- Rowan Cos (RDC) upgraded to Buy from Hold at HSBC Securities
- SeaWorld Entertainment (SEAS) upgraded to Outperform from Neutral at Macquarie
- WageWorks (WAGE) upgraded to Outperform from Market Perform at Wells Fargo; tgt raised to $65
- Downgrades:
- Amneal Pharmaceuticals (AMRX) downgraded to Mkt Perform from Outperform at SVB Leerink; tgt lowered to $12
- Camping World (CWH) downgraded to Market Perform from Outperform at Wells Fargo; tgt lowered to $13.50
- Etsy (ETSY) downgraded to Neutral from Buy at BTIG Research
- National Beverage (FIZZ) downgraded to Sell from Neutral at Guggenheim; tgt lowered to $45
- GameStop (GME) downgraded to Underperform from Neutral at BofA/Merrill; tgt $9
- Life Storage (LSI) downgraded to Underperform from Neutral at BofA/Merrill; tgt $99
- PPL Corp (PPL) downgraded to Sector Perform from Outperform at RBC Capital Mkts; tgt raised to $33
- SemGroup (SEMG) downgraded to Neutral from Buy at UBS; tgt lowered to $14.50
- Exxon Mobil (XOM) downgraded to Market Perform from Outperform at Cowen
- Initiations/resumptions:
- Glaukos (GKOS) initiated with a Neutral at BTIG Research
- LivePerson (LPSN) initiated with a Overweight at Barclays; tgt $35
- Monmouth Real Estate (MNR) initiated with a Neutral at JP Morgan; tgt $14
- Restaurant Brands Int'l (QSR) initiated with a Overweight at Barclays; tgt $73
- Tilray (TLRY) initiated with a Underperform at Jefferies
- Tandem Diabetes Care (TNDM) initiated with a Outperform at BMO Capital Markets; tgt $77
some trades I am looking at today:
$ULTA $300 weekly puts $.50
$AMZN $1575 puts $1.20
$NFLX $340 puts $.50