I wrote a piece last week about how some things remain the same yet certain constants/features change all the time. Well, for those of you who play the NYSE imbalance game with me, the rules which have been in place for countless years are about to change on March 1. So, let me give a little info as far as what is going to happen. The order imbalances will be offered as a separate feed from OpenBook so you need to uncheck the box in your level II’s for NYSE Book. Next, opening imbalances will continue to be published as updated prior to the open starting at 9:28AM. In yet another change, the closing only clearing price will be calculated/defined as the closing only interest where the price is closest to the last sale where the imbalance is zero. This could be quite interesting particularly at the start of the conversion depending on where orders exist on the books. Finally, the major difference is that closing order imbalances will only be published once- and at 3:45PM rather than 3:40PM with an update at 3:50PM. I cannot even begin to guess exactly how smoothly (or not) this process will go once it commences in two weeks. But, I do know that profits can often be created out of confusion and chaos so it is a situation worth acutely monitoring.
Markets over the two day period leading to this morning have been generally higher throughout the world to the tune of about 1% on average in Asia and Europe. The dollar has been slightly weaker overall with gold very strong over the last two days. Futures are nicely higher this morning on hopes for Greek austerity measures as well as increased takeover activity in sectors like the fertilizers. Look for a strong open and a relatively quiet day; it’s a holiday week for kids in the New York area so a few stragglers may take an extra day off today (or week off for that matter). Focus on the plays in the news and the relative strength plays even that much more this morning as those two spots will be the areas to play for sure; it is not a momentum market right now so be precise with your trading.
Reiterating-
If the whole story is not there -
If something is good, assume either a short 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.
If 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
TM- closed near a high
ROVI- closed near a high after posting good earnings
SWM- closed near a high after noting that it will remain the sole supplier of co-developed on-line banded cigarette paper technology in its relationship with Phillip Morris
CMG- closed near a high after posting earnings
BUCY- closed near a high
IBM- closed near a high
KCP- closed near a high after posting great earnings
HGSI- closed near a high
RVBD- closed near a high
APKT- closed at an intermediate-term trend high
MSG- closed near a high
WPRT- closed near a high after posting good earnings
ENTG, WYN- featured on “Mad Money” Friday night
NIHD- agreed with Televisa to Televisa investment in NIHD’s Nextel Mexico subsidiary
TRA- agreed to be acquired by Yara International for 41.10; keep eye on AGU and CF in particular along with other fertilizers like POT for associated plays
RIGL- signed licensing agreement with AZN for late-stage development product used to treat rheumatoid arthritis
OSK- U.S. Army affirmed contract award to OSK
IOC- announced positive resource estimate data
WM- decent earnings
ANF- good earnings
BCS- good earnings
FOSL- good earnings
MRK- decent earnings
APWR- delivered 10 units of 2.7MW wind turbines in China
Bad-The following stocks have bad news and/or a weak technical pattern
CML- closed near a low after posting horrible earnings
BRK/B- added to S&P 500 on Friday; traded down rather sharply after-hours
KFT- poor earnings
PMI- terrible earnings
CTAS- warned on earnings outlook
Earnings:
TUES FEB 16 BEFORE
ANF BCS FOSL
MRK PMI Q
TEVA TNDM WM
TUES FEB 16 AFTER
AMMD FTI JAH
NBR WFMI
Good luck today.
Epiphany Trading, LLC
www.epiphanytrading.com
Erik R. Kolodny- Chief Markets Strategist
Brendan P. Byrne- President
Joseph R. McCandless- Managing Partner
D. Timothy Seaquist- Managing Partner
No comments:
Post a Comment